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PAPERS RELATING TO THE 

FOREIGN RELATIONS 

OF THE UNITED STATES 



WASHm<Mt)N 

OOVBftKMIBHT FEZKHNO OmOS 
I9i$ 




NOTE. 


Diiilomatic correspondcupp. relatin" to the war of lOM-lfllR will 
be printed in suppleiuenUu'y voliuncs of “Foreign Relations of the 
IFmted States.” 



CONTENTS 

pTor alphabetical mdox, see end of volume] 


Page 


Address of the President, annual xx 

List of papers, in clironological order, with subjects of correspondence ky 

War of 1914-1918, note 1 

Circulars: 

Services for the Republic of Panama 1 

Attitude of the United States towards Latin America 3 

Application of section 11 of the Seamen's Act of March 4, 1915, to 

foreign vessels 5 

Radio communicai-ion in the American Hemisphere 5 

Proposed return to the United Stoics of nat\irali 2 scd citizens against 

whom the presumption of expatriation has arisen 10 

Amendment to rules governing the admission of Chinese. 11 

Gifts intended for the President 12 

Legislation on negotiable instruments and commercial paper 12 

Cpiuni laws and regulations ... 13 

International Farm Congress . — 14 

International Irrigation Congress 15 

Argentina: 

Message of the Proeident, Victorino do la Plaza, to tho Congress---- 16 
International High Oommission on Uniform I^ogislation, created by 
tho First Pan American Financial Conference; first general mooting. 

Draft treaty providing for an international gold clearance fund- — - 18 

Austria-Hungary J 

Death of Kmperor FVancis Joseph and accession of Karl I 80 


Release of Frank Chiloni, an Amertoan citizen, impressod into the 
Italian Army and taken prisoner. C^ee Italy; liability to military 
service, etc.) 

Belgium: 

Abrogation of provisions of certain treaties conflicting with tho 8ea^ 


men^a Act of March 4, 1615. Acceptance of the abrogation by 
Belgium, China, Denmark, France, and Greece. Statement by 
Brazil of status of treaty provisions 33 

Brazil: 

Treaty for the advancement of general peace, concluded between the 
United States and BrazlL-- - - 43 


Abrogation of provlaions of certain treaties conflicting with the Sea* 
men’s Act of March 4, 1615. Statement by Brazil of status ol 
treaty provisions* (£s« Belgium.) 

(%ile: 1 

Treaty for the advancement of general peace, concluded between the . 
United States and . 40 

China: 

Agieement between the United States and China esiending time for ^ 

^ appointment ol the commission under Artii^ 9 of the Treaty of 
S<g>tember 15, 1614. JWeet^ by exchange of notes-..— , W 

■I ' m 



IV 


CONTENTS 


China — Continued. ’Pnjre' 

Political affairs. Movement to restore monarchical government in 
China. Secessionist and revolutionary movements. Convoca- 
tion and assembly of Parliament 51 

Death of President Yuan Shih-Kai and siiccossiou of President Ta 

Yuan-hung OS 

Huai River conservancy project. Further extension of the CVoss 
option Contra<‘ts I between China and an Vnioiienn firm for iin- 
provcnicni of the Grand Canal in Kiangsu and Shantung. Inter- 
vention of Japan aiul reservation of rigid s b^ (ho Unifeil States lOH 
Financial affairs. Loan agreements with i,ee, Higginson nud 

with the Continental Sc C'oininorcial Trust it' Sa\ings P»ank of 
Chicago. Opposition of the e.oiisortiuni groufis; attitmle <vf the 
United States - . - , . 128 


Railway concessions. Hukuang railways; disiTiminalion against 
American material, Nanking-Nanchang-Pinghsiang concession to 
the British and Chinese Corporation. I’in-hei <'f>nc(*ssion to the 
Russo-Asiatic Bank. Fongchen-Ninghsia concession to the Siems- 
Carey <fe Co. (Ltd.). Protest of Russia Attitude of th(‘ Pnite^d 
States — . 150 

Abrogation of provisions of certain treaties contlicfing with the »Soa- 
men’s Act of March 4, 1915. Acceptance of the abrogation by 
China. (Hcc Ficlgium.) 

Protection of Chinese inienists in Kcuador by the Ami'rican lj<'gation. 

(Sec Ecuador.) 

Discrimination in freight rates affecting equality of commercial op- 
portunity in China. Protest of the United States. (AVc Japan.) 

Protection by the United States of Chinoso intcresiH in Mexico. (iSee 
Mexico.) 

Colombia: 

Correspondence relating to the treaty of April 6, 1914, between the 

United States and Colombia 2U 

Costa Rica; 

Message of the President, Alfredo Gonzalez, to the C^mgresfi 217 

Protest of Costa Rica against proposed Nicaragua ('anal tn^aty and 
suit of Costa Rica against Nicaragua. (Sec Nicaragua.) 

Denmark: 

Abrogation of provisions of certain treaties <»(mfll<5ting with the 
men’s Act of March 4, 1915. Acceptance of the abrogation by 
Denmark. (See Belgium.) 

Dominican Republic: 

Political affairs. Revolutionary movements. Resignation of IVwl- 
dent Jimenez. Election of Provisional President Henrhptos; 
refusal of recognition by the United States, Military occupation 
of the Republic by Unit^ States forces anrl eHtnbliMhmcmt of martial 
law. Protest by the Dominican Oovcrnnient . , 220 

Financial affairs. Assumption by the United States of control of 
Dominican finances; protest by the Dominican Governruent 240 

Ecuador: 

Treaty for the advancement of general peace conclwled iHfttwiMm the 


United States and Ecuador— , 257 

Protection of Chinese interests in Ecuador by the American . 250 

Claims of the Guayaquil Sc Quito Railway (k>. against Ecuador. 
nial by Ecuador of propriety of diplomatic intervention by the 
United States. Failure of loan u^otiaiiuim of Kcuador...*^ ..*,.*«* 200 



CONTENTS 


V 


France; Pago 

Liability to French military service of naturalized American citizens 
of French origin and of Amcriean-born children of French parentage- 270 

Abrogation of provisions of certain treaties conflicting with the Sea- 
men’s Act of March 4, 1915. Acceptance of the abrogation by 
France. (/SVe Ihdgium.) 

Kxchange of notes between the Ilniled States and France concerning 
French inlcrtssts in Haiti. (xVee Haiti.) 

Frcu(‘h protcvjtorate in Morocco. Abrogation of the capitulations 
in the French zone. Issuance of cxctpiaturs to American consular 
olhcers in the French zone. (See Morocco.) 

Clcnnany : 

Fxiension of the period of priority fixed by the Tnternational Con- 


veiilioii for the Protection of Industrial IVopcrly-. 275 

Great Britain: 

Convention heiwctni the United States and Great Britain for the pro- 
tection of migratt>ry birds - 270 

Application to Porto Rico of the provisions of the treaty of 1S90 be- 
tween Groat Britain and the United Stahls relative to the tenure 

and disposition of real and personal ])rt>perty 2R3 

Overflow of the waters of the Lake of the Woods 294 

Greece: 


Abrogation of provisions of ciTtain treaties eoaflieting with the Sea- 
men’s Act of March 4^ 1915. Acceptance of the abrogation by 
Grt^eci^. (See Belgium.) 

Guatemala: 

Agreement Victween the United State and Guatemala extimding time 
for a]ipointme.nt of the eomniissioa under Article II of the treaty of 


September 20, 1913. lOlTeetcd by oxchangt^if notes . 307 

Message of the Pre-sidoni, Manuel Kstrada (’ahrera, to the National 
Legislativo Assembly - 308 

Haiti: 

Polith’al afTaira* ContinuaiH'O of occupation by American forces. 

Gonvocat ion of a constituent assembly .. . -- 310 

Tr<‘nty between the United State and Haiti relating to the finanei's, 


eeonomic dcvi‘lopmont and tranquillity of Haiti. Gorrt^spondenco 
and exchange of note conrerning the inli'rprelatlon tluireof. 
Agreement chtubliKhing the cfunpensat ion of oflicialH provided for 
In Article il of the treaty. Agreenumi establishing the compensa- 
tion of miglneors providwl for in Article XI 11. Gendarmerie pro- 
tocol carrying out tlm provisiotiH of Articde X. Telegraph and tele- 
phone agn'ement airryiug proviHions of Article XHI. Protocol 

amending the French text of the gendarmerie protocol 322 

t'inaneial and economic affairs. Adminisiratloti of the flnancos of 
Haiti by American oiliclals. Agreeimmi between the Haitian com- 
miHsion and the National Bank of the Republic of Haiti. Appoint- 
ment of American oflhdalH im<!or pnivisioiiH of the treaty. . «« 338 

Controversy between the National Riulroad Go, of IlHiti and the 

Government of Haiti. Good offUa^ of the United State 368 

Kxchange of tiote between the United States and France concerning 
French initmtH in Haiti 886 



VI 


CONTENTS 


Honduras: VnK»> 

Tioaty for the advancement of general peace concluded between tlie 

United States and Honduras 

Message of the President, Alberto Membrcho, to the C<>ngr(^''S , ;i91 

Arrest of J. W. Grace, an American citizen, resulting from a law (\f 

Honduras regarding destruction of ])ropeity by tiro I-iOii 

Italy • 

Liability to military service upon return to Tialy of (1) naturalized 
American citizens of Italian birth; (2) persons born in tlu‘ rnited 
States of Italian parents before the iiaturalizatiiui of tb<‘ parents. 

Dual citizenship. Detention in Italy of wives and children of 
naturalized citizens of Italian birth. ('Correspondence rtdating U> 
negotiation of a naturalization conventit>n .dOS 

Japan ; 

Treaty between Jai^an and Russia guaranteeing the (t‘rri<ori,'d rights 
and special interests of each in the Far h]as1 ^ *120 

Discrimination in freight rates allocting equality of (Mumucrcial 
opportunity in Chinn. Protest of the United i^tatos 4*h> 

Kongo . 

Abrogation by the United States <)f Arthdc 5 of tlu‘ treaty of January 
24, concluded between the United states ami tlu‘ Indepmclcni 
Slate of the Congo. Acccqdanee of the abrogatioti iuul denuncia- 
tion of the treaty by Uelgium. USVc Rtdgiuin.) 

Liberia: 

Political attairs. Crushing of the revolt of native trilu^M, As-sislatu’e 


rendered by the United States 452 

Financial utTairs - 45S 

Message of the Presidont to the LilK*rian Legislature, - 4tU 

Mexico: 


Political atTairs. Francisco Villa, Raphael Uastro and Pabhi Lo|h‘z 
dcclaro<l outlaws by the de facto Gtjverninont. Hep«»rt of the 
Secretary of State to the Senate (m coiuJitions in Mc\ici>. Hai«l on 
Columbus, New Mexico, by Villa l^andits. Ihir.suit t>f Villa I>y 
Aiuerican troops. Attitude of obstruction by the tk facto (hn’ern- 
meiit. Activities <^f do la Rosa. Raid on Ohm Springs, IVx., by 
Mexicans. Demand of the tfc facto Government ft>r withdrawal 
of Amcricaii troops from Mexico. Atfituric of tlie United States. 
Attack on American ir<K>p.H irj Mexico by do ftuio (Jovcrnnn.mt 


troops. Attacks on American naval detachments at Tampico and 
Mazatlan. Amoricnn-Mexican Joint Commission, Hc>iowo<l 
activities of bandits under Villa. C?ai)ture of Ghihauhua ami 
T(jrreon by Villa. Kocapturo by da facto Govormiuint . , 4r»;i 

Financial alTairs. Sequestration of the National Rank of Mexico 
and the Bank of London and Mexico by the da facto Govi^rn- 
meut. Good oHicoft of the United States, <120 

Protection of Americarm and Anioricun interesis, MnsfUicn’ of 
American citizens at Santa Ysalxil. Dt^prtsdatiuns of the Vaqui 
Indians. Other depredations by Villmta bunds , 050 

Withdrawal of American cousular otiicera anti titber Ainericuns front 

, „ i\m 

Protection of American mining intcrcstH in Mexico 7m 

Protection of Artterican oil interestH in Mexico 74 J 

Seizure and confiscatiott of American proiKtrticM and ft#n*ed loans 
imposed on American citizens 77d 



OONTEITTS 


VII 


Mexico — Continued, Page 

Embargo on the exportation of arms and munitions of war to Mexico- 787 

Protection of Chinese interests in Mexico — 795 

Protection of Turkish interests in Mexico - 797 

Morocco : 

French Protectorate in Morocco. Abrogation of th<‘ capitulations 

in the French Zone 800 

Issuance of exequaturs to American consular ofTioers in the French 

and Spanish zones in Morocco 808 

Nicaragua: 

Intcnu'oanic Canal treaty between the XTnited States and Nicaragua. 
ProtOiSts of Colomi>ia, Costa Rica and Salvador in relation Iboroto, 

Suit of Costa Eic‘a and Salvador against Nicaragua bc*fnr(‘ the 
Central American ("ourt of Justice. Attitude of Honduras. Atti- 
tude <»f the United States - 811 

Finamiial alTairs 808 

Panama: 

Arbitration of claims of American cilizons against Panama on account 
of injuries sustained during the riot at Panama ( 11 y <m July 4, 1012 91S 

Riot at Colon, April 2, 1915. Killing of Ciirporal Langtlon and 
wounding of other American soldiers - . . 924 

Disarmament of the national police of Panama of high-power rilltss-- 938 

Status of the Panama Railway Co - ----- 943 

Salvador: 

Message of President Don ( larlos Melendez to the National Assen\bly- 955 
Spain : 

Removal of the remains of Spanish wtilors wlio died while prisonorH 

in the United States , 957 

Issuance of exequaturs to American consular otiicerH in the Spanish 
zone in Moro(xo. Morocco,) 

Turk<\v : 

Aticinpted abrogation of the capitulations. Refusal of the United 

States to accpnescc - 003 

New Ottoman ctjstoms tariff — 975 

Protection of Turkish iuicr('.ftt8 in Mexico. (Ncc IMttxico.) 

International conferences and congresse..s held in the United Stai(^s - 

Second Pan American Hctentific Oongrtw... ... - 970 

Inf(>rmal cf»nferene<f on radio communication in the American 

Hcmisphorc 970 

International conventions — 

Convention between the United States and other powers for the 

protection of trade-marks- - - . - - 980 

Index - - 989 




ADDEESS OF THE PRESIDENT 


Gentlemen of the Congress: 

In fulfilling at this time the duty laid upon me by the Constitution 
of communicating to you from time to time information of the state 
of the Union and recommending to your consideration such legisla- 
tive measures as may be judged necessary and expedient, I shall 
continue the practice, which I hope has been acceptable to you, of 
leaving to the reports of the several heads of the executive depart- 
ments the elaboration of the detailed needs of the public service and 
confine myself to those matters of more general public policy with 
which it seems necessary and feasible to deal at the present session 
of the Congress. 

I realize the limitations of time under which you will necessarily 
act at this session and shall make my suggestions as few as possible; 
but there were some things left undone at the last session which 
there will now be time to complete and which it seems necessary in 
the interest of the public to do at once. 

In the first place, it seems to me imperatively necessary that the 
earliest possible consideration and action should be accorded the 
remaining measures of the progranome of settlement and regulation 
which I had occasion to recommend to you at the close of your last 
session in view of the public dangers disclosed by the unaccommo- 
dated difficulties which then e^osted, and which still unhappily 
continue to exist, between the railroads of the country and their 
locomotive engineers, conductors and trainmen. 

I then roconunended: 

First, immediate provision for the enlargement and administrative 
reorganization of the Interstate Commerce Commission along lines 
embodied in the bill recently passed by Jhe House of Jlepresenta- 
tives and now awaiting action by the Senate, in order that the Com- 
mission may be enabled to deal wjth the many great and various 
duties now devolving upon it with a promptness and thoroughness^ 
which are, with its present constitution and means of aption, prac- * 
tically impossible. 

Second, the establishment of an eight-hour day as thp legal basis 
alike of work and of wages in the employment of all railway ^mlpldy^e^ 
who are actually engaged in the work of operating trains in interstate 
transportation. , . 

Third) the authorization of the appointment by thp IVesidm^ 
small body of men to observe the actual results in ^perience of jfche 

nc 



X 


ADDRESS OP THE PBESIDEIS'T 


adoption of the eight-hour day in railway transportation alike for 
the men and for the railroads. 

Fourth, explicit approval by the Congress of the consideration by 
the Interstate Commerce Commission of an increase of freight rates 
to meet such additional expenditures by the railroads as may have 
been rendered necessary by the adoption of the eight-hour day and 
which have not been offset by administrative readjustments and 
economies, should the facts disclosed justify the increase. 

Fifth, an amendment of the existing Federal statute which pro- 
vides for the mediation, conciliation and arbitration of such con- 
troversies as the present by adding to it a provision that, in case the 
methods of accommodation now provided for should fail, a full public 
investigation of the merits of every such dispute wshall bo instituted 
and completed before a strike or lockout may lawfully be attempted. 

And, sixth, the lodgement in the hands of the Executive of tlie 
power, in case of military necessity, to take control of such portions 
and such rolling stock of the railways of the country as may be 
required for military use and to operate them for military pur- 
poses, with authority to draft into the military service of the United 
States such train crews and administrative officials as the circum- 
stances require for their safe and efficient use. 

The second and third of these recommendations the Congress 
immediately acted on. It established the eight-hour day as the 
legal basis of work and wages in train service and it authorized the 
appointment of a commission to observe and report upon the prac- 
tical results, deeming these the measures most immediately needed; 
but it postponed action upon the other suggestionwS until an oppor- 
tunity should be offered for a more deliberate consideration of them. 
The fourth reconomendation I do not deem it necessary to renew. 
The power of the Interstate Commerce Commission to grant an 
increase of rates on the ground referred to is indisputably clear and 
a recommendation by the Congress with regard to such a matter 
might seem to draw in question the scope of the Commission's 
authority or its inclination to do justice when there is no reason to 
doubt either. 

The other suggestions — the increase in the Interstate Commerce 
Commission's membership and in its facilities for performing its 
manifold duties, the provision for full public investigation and 
assessment of industrial disputes, and the grant to the Executive of 
the power to control and operate the railways when necessary in 
time of war or other like public necessity — now very earnestly 
renew. 

The necessity for such legislation is manifest and pressing. Those 
who have intrusted us with the responsibility and duty of serving 
and safeguarding them in such matters would find it hard, I believe, 



ADDRESS OP THE PBESTOEirT 


XI 


to excuse a failure to act upon these grave matters or any unneces- 
sary postponement of action upon them. 

Not only does the Interstate Commerce Commission now find it 
practically impossible, with its present membership and organiza- 
tion, to perform its great functions promptly and thoroughly but it is 
not unliiely that it may presently be found advisable to add to its 
duties still others equally heavy and exacting. It must first be per- 
fected as an administrative instrument. 

The country can not and should not consent to remain any longer 
exposed to profoimd industrial disturbances for lack of additional 
moans of arbitration and conciliation which the Congress can easily 
and promptly supply. And all will agree that there must be no doubt 
as to the power of the Executive to make immediate and uninter- 
rupted use of the railroads for the concentration of the military forces 
of the Nation wherever they are needed and whenever they are 
needed. 

This is a programme of regulation, prevention and administrative 
efficiency which argues its own case in the mere statement of it. 
With regard to one of its items, the increase in the efficiency of the 
Interstate Commerce Commission, the House of Representatives has 
already acted; its action needs only the concurrence of the Senate. 

I would hesitate to recommend, and I dare say the Congress would 
hesitate to act upon the suggestion should I make it, that any man 
in any occupation should be obliged by law to continue an employ- 
ment which he desired to leave. To pass a law which forbade or 
prevented the individual workman to leave his work before receiving 
the approval of society iu doing so would be to adopt a new principle 
into our jurisprudence which, I take it for granted, we are not pre- 
pared to introduce. But the proposal that the operation of the rail- 
ways of the country shall not bo stepped or interrupted by the con- 
certed action of organized bpdies of men until a public investigation 
shall have been instituted which shall make the whole question at 
issue plain for the judgment of ,tho opinion of the Nation is not to 
propose any such principle. It is baaed upon the very different prin- 
ciple that the concerted action of powerful bodies of men shall not he 
permitted to stop the industrial processes of the Nation, at any rate 
before the Nation shall have had an opportunity to acquaint, itself 
with the merits of the case as bet;ween employee and employer,; .time 
,to form its opmion upon an impartial statement of the merits, and 
opportunity to consider all p;raetb»ble ni,®*°9i 9 ^ 
arbitration. I can see nothing m that proposition but just^able 
safeguarding by sodety, of the necessary proc^es of , its very life. 
There is nothing arbitrary or unjust in it unless, it be ,arhitr,arily and 
unjustly done. It can and sbpi4<i be done yrith a full and scrupulous 



ADDRESS OE THE FRESIDEITT 


XH 

regard for the interests and liberties of all concerned as well as for 
the permanent interests of society itself. 

Three matters of capital importance await the action of the Senate 
which have already been acted upon by the House of Representatives: 
The bill which seeks to extend greater freedom of combination to 
those engaged in promoting the foreign commerce of the country than 
is now thought by some to be legal under the terms of the laws against 
monopoly; the bill amending the present organic law of l^orto Rico; 
and the bill proposing a more thorough and systematic regulation of 
the expenditure of money in elections, commonly called the corrupt 
practices act. I need not labor my advice that these measures be 
enacted into law. Their urgency lies in the manifest circumstances 
which render their adoption at this time not only opportune but 
necessary. Even delay would seriously jeopard the interests of the 
country and of the Government. 

Imm ediate passage of the bill to regulate the expenditure of money 
in elections may seem to be less necessary than the immediate enact- 
ment of the other measures to which I refer; because at least two 
years will elapse before another election in which Federal offices are 
to be filled; but it would greatly relieve the public mind if this import- 
ant matter were dealt with while the circumstances and the dangers to 
the public morals of the present method of obtaining and spending 
campaign funds stand clear under recent observation and the 
methods of expenditure can be frankly studied in the light of present 
experience; and a delay would have the further very serious disad- 
vantage of postponing action xmtil another election was at hand and 
some special object connected with it might bo thought to bo in the 
mind of those who urged it. Action can be taken now with the 
facts for guidance and without suspicion of partisan purpose. 

I shall not ai^e at length the desirability of giving a freer hand 
in the matter of combined and concerted effort to those who shall 
undertake the essential enterprise of building up our export trade. 
That enterprise will presently, will immediately assume, has indeed 
already assumed, a magnitude unprecedented in our experience. 
We have not the necessary instrumentahties for its prosecution; 
it is deemed to be doubtful whether they could he created upon an 
adequate scale under our present laws. Wc should clear away all 
legal obstacles and create a basis of undoubted law for it which 
will give freedom without permitting unregulated license. The 
thing must he done now, because the opportunity is here and may 
escape us if we hesitate or delay. 

The argiment for the prosposed amendments of the organic law 
of Porto Rico is brief and conclusive. The present laws governing 
the island and regulating the rights and privileges of its people are 
not just. We have created expectations of extended privilege 



ADDRESS OE THE PRESIDENT 


XIII 


which we hare not satisfied. There is uneasiness among the people 
of the island and even a suspicious doubt with regard to our inten- 
tions concerning them which the adoption of the pending measure 
would happily remove. We do not doubt what we wish to do in 
any essential particular. We ought to do it at once. 

At the last session of the Congress a bill was passed by the Senate 
which provides for the promotion of vocational and industrial educa- 
tion which is of vital importance to the whole country because it 
concerns a matter, too long neglected, upon which the thoroi^h 
industrial preparation of the country for the critical years of economic 
development immediately ahead of us in very large measure depends. 
May I not urge its early and favorable consideration by the House 
of Representatives and its early enactment into law? It contains 
plans which affect all interests and all parts of the country and I 
am sui’o that there is no legislation now pending before the Congress 
whose passage the country awaits with more thoughtful approval or 
greater impatience to see a great and admirable thing set in the way 
of being done. 

There are other matters already advanced to the stage of con- 
ference between the two Houses of which it is not necessary that I 
should speak. Some practicable basis of agreement concerning 
them will no doubt be found and action taken upon them. 

Inasmuch as this is, gentlemen, probably the last occasion I shall 
have to address the Sixty-fourth Congress, I hope that you will 
permit me to say with what genuine pleasure and satisfaction I 
have cooperated with you in the many measures of constructive 
policy with which you have enriched the legislative annals of the 
country. It has been a privilege to labor in such company. I 
take the liberty of congratulating you upon the completion of a 
record of rare serviceablencss and distinction. 

Woodrow Wilson 

December 6 , 1916 - 




JST OF PAPERS, WITH SUBJECTS OF CORRESPONDENCE 

OIRCULAKS 


From and to whom 

Date 

Subject 

Pj^e 

Circular 

1916 

Jan. 21 

Consular services for Panama. General instruction 

1 

Circular (tologiam) 

Jan. 24 

as to the duties of American consular officers in 
behalf of the Panaman Government in countri^ 
where it has no consular officers of its own. 
Attitude of the United States toward Latin Amenca. 

3 

Circular 

Mar. 9 

Proposition for a general convention 

Application of Sec. 11 of the Seamen's Act of Mar. 4, 

5 


Mar, 15 

1916, to foreign vessels. See. 11 of the Seamen’s 
Act applies to seamen engaged m theUnited States 
for vessels of every foreign nation. 

Radio communication in the American Hemisphere. 

5 

Circulai (trlogram) 

Mar. 27 

Incloses memorandum containing a compuation 
of the recommendations of the Departments of 
State and the Navy. 

Attitude of the U nlted States toward Latin America. 

3 

Circular 

Apr. 1 

Same tenor as circular telegram of Jan. 24, 3916. 
Same subject. Same tenor as circular telegram of 

4 

do 

Juno 1 

Jan. 24, 1916 

Proposed return of natur*dized citizens against whom 

10 

do 

June 6 

the presumption of expatriation has arisen. Ab- 
rogation of Rule D of the circular of Nov. 18. 1911. 

Amendment to rules governing the admission of 
Chinese, regardmg the admissibility of the sons 
bom abroad of Chinese citizens of the United 
States. 

Gifts intended for the President. Instruction to 

11 

do 

Juno 27 

12 

do 

Juno 29 

dedmo to accept them for transmission. 

Lewslation on negotiable instruments and commer- 
cial paper. Instruction to send full information, 
for the use of the International High Commission. 
Opium laws and regulations Instruction to gather 

12 

do 

July 3 

13 


Aug. 24 

information useful in formulating regulations j 
under Sec, 6 of the Opium Act. 

International Farm Congress. Instruction to ex- 

14 


Sept. 8 ^ 

tend invitation. 

International Irngatioir Congress. Instruction to 

15 


extend mvitation. 




ARGENTINA 



I 


Mr, McAdoo to Mr. Lan» 
f’ing. 

Mr. Quintana to Mr. Lan- 
sing. 

Mr. Lansing to Mr, Quin- 
tana. 

Same to same 


191C 
Feb. 18 


Fob. 23 

Fob. 25 
Mar. 7 


Mr. Polk to Mr. Gonzales 
et al. 


Mar, 14 


Mr. Stimson to Mr. Lan- 
sing (telegram). 

President do la Plaza to 
President Wilson (tele- 
gram). 

President Wilson to Presi- 
dent de la Plaza (tole- 

WlE^^anstag to Mr. Stim- 


son et al. 

Mrf Stimson to Mr, Lan- 
sing* 

Diplomatic circular 


Apr. 3 
Apr. 15 

May 17 

June 6 
June 9 
June 29 


International High Commission. Review of the 
work and future program of the High Commission 
and request for the cooperation of the Department. 

Same subject. Invitation of Argentina to be repre- 
sented at the Buenos Aires meeting in April of the 
High Commission. 

Same subject Transmits reports thought to be of 
use to the members of the High Commission. 

Same subject. Response to his Feb. 23; gives per- 
sonnel of the United States delegation. 

Same subject. Instruction relating to proposed 
visit of the United States delegation in certain 
American countries. 

Some subject. Reports opening of session of BUgh 
Commission 

Same subject. Con^atulations on the meeting of 
the High Commission. 

Same subject. Reply to the foregoing 


Same subject. Instruction to express thanks for the 
friendly reception of the United States delegation. 
Message of the President. Extracts 

International High Commission;^ Instruction re- 
garding the future labors of the High Commission* 


18 

21 

21 

21 

22 


23 

23 

24 
16 
24 


XV 


XVI 


LIST OF PAPEBS 


A R GENTINA— Continued 


From and to whom 

Date 

Subject 


1916 

Same subject. Transmits copies of Spanish version 
of uniform warehouse receipts act. 

Foreign diplomatic circular- 

July 8 


Aug. 3 

Same subject. Transmits memoranda on the pro- 
ceedings of the central executive council and of the 
United States section of the High Commission on 
June 15. 

' 

Oct. 4 

Same subject . Transmits ' ‘ First edition of the com- 
mittee reports and resolutions adopted at the first 
meeting of the International High Commission at 
Buenos Aires in Apiil, 1916.” 

Mr. Lansmg to Mr. Stim- 

Dec. 14 

Same subject. Incloses copies of draft treaty’* pro- 

son et aJ. 

viding for an international gold clearance fimd, 

1 with instruction to take up the matter with the 
foreign ofifice and otheis with a view to obtaining 
expressions of opinion. 

I 


AUSTRIA-HUNGARY 



Mr. Zwiedinek to Mr. Lan- 

1916 

Nov. 22 

Death of Emperor Fiancis Joseph and accession of 

30 


smg. 

The Emperor to the Presi- 

—do 

Karl I. Notification of the death of the Kmperor. 
Same subject and purport — 

30 


dent (telegram). 

The Pr^ident to the Em- 

--do 

Same subject. Expression of condolence 

30 

1427 

peror (telegram). 

Mr. Lansing to Mr Pen- 

—do 

Same subject. Instruction to express condolence 

31 


field (telegram). 

Mr. Lansmg to Mr Zwied- 

Nov, 23 

Same subject. Reply to his Nov. 22, with expression 

31 

1428 

inek. 

Mr. Lansing to Mr. Pen- 
field (telegram). 

Mr. Penfield to Mr, Lan- 

...do 

of condolence. 

Same subject. Appoints him special ambassador... 

Same subject. Transmits expression of thanks from 
the Minister of Foreign AfTairs. 

Same subject. Reports attendance at the obsequies 

31 

1661 

Nov. 26 

32 

2259 

sing. 

Same to same 

Dec. 8 

32 




of the late Emperor. Dec. 30 is the date of the 
coronation of Karl IV and Queen Zita at Budapest. 



BELGIUM 


1666 


1680 


US 

253 

796 


1916 

Mr, Jusserand to Mr. Lan- Feb. 14 
sing. 


Mr. Lansing to Mr. Jusse- Mar. 7 
rand. 

Mr. Lansing to Mr. Os- Apr- 1 
bomo (tdegram). 


Mr, Reinsch to Mr. Lan- 
sing (telegram). 


Apr. 7 


Mr. Lansing to Mr. Jusse- Apr. 12 
rand. 

Mr. Lansmg to Mr. Apr. 21 
Reinseh (tdegram). 


Mr. Droppers to Mr. Lan- May 30 
sing. 

Mr. Egan to Mr. Lansing June 3 
(telegram). 


Mr. Morgan to Mr. Lan- 
sing. 


June 6 


Mr. Lansing to Mr. Egan 
(telegram). 


June 30 


Mr. Osborne to Mr Lan- 
sing. 


...do 


Seamen’s Act. Acceptance by Franco of the abro- 
ration of Art. 6, Treaty of iS22, and Arts, 8 and 9, 
Treaty of 1863, m conflict with the Seamen’s Act. 

Same subject. Acknowledgment of his Feb. 14 

Seamen’s act. Instruction to request an early reply 
to representations made in accordance with 
Department’s May 29, 1916. 

Same subject. Refers to circular of Apr. 1 and re- 
quests instraction in leply to Mr. MacMurray's 
July 11, 1915. 

Same subject. Replies furthoi to his Fob. 14 

Same subject. Refers to his Apr- 7; instru(»ts him to 
address the Chinese Govornnient looking to the 
abrogation of only the second sentence, Art. IS, 
Treaty of 1858. 

Same subject. The Greek Government con.sonLs to 
abrogation of arts. 12 and 13 of the convention of 
1902, e'«cept as concerns the IfoUonio Navy. 

Same subject. Foreign (Jffice accepts proposition t o 
abrogate certain provisions of treaty in conflict 
with Seamen’s Act. 

Same subject. Incloses note from Foreign Oflfloe 
stating that provisions relating to commerce and 
navigation in the treaty of 1828 with Brazil were 
abrogated in 1841. 

Same subject. Department Is gratified that the 
Danish Government accepts the proposal of this 
this Government. It is expected that the courts 
will apply the proper law in the constniction of 
the act, and collectors will accept cortifleatoe issued 
to able seamen by Danish autliorltica. 

Same subject. Incloses Foreign Ofllcc note of ac- 
ceptance by Belgium of the abrogation of Arts. 1 1 
and 12 of the Treaty of 1880, and of Art. 5 of the 
Congo Treaty of 1891. 


39 

40 
33 

38 

40 


38 


41 

38 


39 


33 







LIST OF PAPERS 


xm 


BELGITTM— Oontinued 


No. 

From and to whom 


Subject 

Page 


Mr. Reinsch to Mr. Lan- 

1916 

June 30 

Same subject. Exchange of notes effected to-day 
terminatmg as from July 1, 1916, the sentence 
specified m Department's Apr. 21. 

Same subject. May the abrogation be explicitly 

38 


sing (telegram). 

Mr. MacMurray to Mr. 

July 11 

37 


Lansmg (telegram). 

Mr. Lansmg to Mr. Mac- 

July 15 

confined to the second sentence of Art. 18, Treaty of 
1868, which alone concerns arrest of seamen? 

Same subject. Reply to his July 11, to take no 

37 


Murray (telegram), 

Mr. Lansmg to Mr. Beyens_ 

Nov. 11 

action until further instructed. 

Same subject. Notice of abrogation of the treaty of 

34 


Mr. Beyens to Mr. Lansing. 

Dec. 31 

Jan. 24, 1891 , between the Umted States and Kongo 
should be given by the Belgian Government 

Same subject. The treaty of Jan. 24, 1891, between 

35 



the United States and the Kongo was denounced 
by the Belgian Government by its note dated June 
29. 1916. 



BEAZ3X 




1916 

Oct. 30 

Treaty for the advancement of 

general peace, con- 

43 




eluded between the Umted i 
Proclamation. 

States and Brazil. 

j 



CHILE 




1 

1916 

Jan. 22 

Treaty for the advancement of 

peace, concluded 

46 




between the United States and ( 
Uon. 

Dhile. Proclama- 



CHINA 




1915 

519 

Mr. Reinsch to Mr. Bryan. 

Jan. 18 

266 

Mr. Bryan to Mr. Reinsch. 

Apr, 9 

624 

Mr. Reinsch to Mr. Biyan. 

May 6 


Hr. Lansing to Mr. Reinsch 
(telegram). 

Nov. 18 


Mr Reinsch to Mr. Lansing 
(telegram) . 

Nov. 24 


Same to same (telegram)... 

Nov, 26 

885 

Same to same .... 

„.do 

Mnl^ansing to Mr. Reinsch 
(telegram). 

Deo. 17 


Railway negotiations. Transmits copies of dis> 
patches addressed to the Legation by Mr. Arnold 
on the present status of the tenders for bridge ma- 
terial for the Canton-Hankow section. 

Same subject. Acknowledges receipt of dispatch 
No. 619, Jan. 18, 1916. Department approves your 
notes of Nov. 12, 1914, and Jan. 18, 1916, to the 
Minister of Communications. 

Same subject. Incloses a copy of the English text of 
a contract concluded on Mar. 31, 1914, between the 
Chinese Government and the British and Chinese 
Corporation (Ltd.), for a loan of £8,000,000 for the 
construction of a railway from Nanking to Nan- 
diang and thence to Pingsiang. 

Same subject. It is claimed that administration 
expects to place order for locomotives by private 
tender contrary to agreement concerning Amencan 
standards and pubhc opening of bids. Urge Min- 
ister of Communications to li^tmot as promised in 
your telegram of Nov. 11, 1914. 

Same subject. Managmg director of Hukuang Rail- 
way agrees to accept tenders for 10 locomotives 
with alternative American standard spodfloations. 

Same subject. Managing director requires shop 
erection m bridge contracts. Are Amencan manu- 
turers willmg to guarantee fit without shop erec- 
tion? 

Same subject. Incloses copies of dispatches from the 
Consulate-General at Hankow, concerning ma- 
terials for the Hukuang Railways; a copy of Lega- 
tion'sNo. 1330 to Hankow, and a copy of a pro- 
test lodged with the Minister of Oommunications 
in regard to specifications for bridges included 
in requisition No. 05. 

Same subject. Your telegram of Nov. 20, 3 p. m. 
Use of template and spacmg machines makes all 
spans exact duplicates. This with inspection con- 
sulting enfidneer should he sufficient. 


160 


156 


156 


163 


163 

163 


164 


166 


106413'’— F H 1910 2 










xvin 


LIST OP PAPERS 


OHINA—Oontmued 


No. 


364 


876 


377 


892 


From and to whom 


Same to same,, 


Mr. Reinsch to Mr. Lansing 
(telegiam) 


923 


931 


947 


965 


Same to same 

Same to same (telegram).., 

Mr. Lansing to Mr. Reinsch. 
Same to same (telegram)... 


Mr.ReinsclitoMr Lansing 
(telegram) . 

Same to same 


Same to same (telegram) ... 


-do. 


Same to same. 


.do., 


Same to same (telegram)... 


Same to same. 


-do.. 


Date 


1915 

Dec. 18 


1916 
Jan. 3 


-do. 


Jan 4 

Jan. 5 
Jan. 10 


Jan. 11 
Jan. 15 


Jan. 19 


Jan. 29 


Feb. 4 


Feb. 9 


Feb. 21 


Feb. 23 


Feb. 24 


Subject 


Same subject. Steel Products Co. is unwilling to give 
the guaranty reqmred. States its work is laid out 
by means of templates and spacing machinosj all 
spans ovaci duplicates As Company has bid upon 
the specifications exactly as called for, urge 
upon Chinese Government the fairness of these 
proposals 

Political affairs. Situation more serious from point 
of view of Central Government. Continued exist- 
ence of disaSection at Yunnan and Kweichow is 
likely to encourage opposition elsewhere. 

Same subject. Discusses the Yunnan movement. 
In present situation, two pnncipal features are the 
personal umpopularity of Yuan and fear of Japan. 
Thus far military governors are repoitod loyal. 

Huai River conservancy loan Reply to Depart- 
ment’s Dec, 28, 1915 The Chinese Government 
will renew the Red Cross option if the bankers will 
finance restoration of the Grand Canal from the 
Yangtze to Teebow at not over $3,000,000. 

Railway negotiations. Acknowledges receipt of dis- 
patch No. S36 of Nov. 26, 1916. A pprovcs of action 
taken. 

Huai River conservancy loan. The Red Cross be- 
hoves the American International Corporation 
would be Interested m the Grand Canal project on 
hues suggested in his Jon. 4; states teiins desired, 
includiag extension Red Cross option on Huai 
River conservancy project 

Political affairs Yunnanese revolutionists are 
attempting military operations against the south. 

Same sud jeet . Revolutionary movement in Y unnan 
has not passed as yet beyond the stage of a personal 
revolt. No further defection of military loaders. 
Repiescntativos of powers, with whom discussion 
of this matter has been bad, feel that delay of recog- 
nition of the monarchical government would only 
servo to encourage irresponsible element. 

Same aubjoct, Yunnan revolt still localized. 
C'hange m the form of state will probably soon bo 
announced together with a specific declaration of 
policy Neutral ministers agree that recognition 
upon announcement is warranted by actual author- 
ity of Government and advisable 

Same subject. The Ministers of Spain, Netherlands, 
Sweden, Portugal and Denmark signified their 
readiness to cooperate in the recogniatlon of the 
Imperial Government. No intimation given to 
the Chinese Government of likelihood of recogni- 
tion by the United States. Authority of Govern- 
ment in south should bo more fully tested. 

Huai River conservancy loan. Reply to Doptirt- 
ment’s Jan. 10. The matter is settled according to 
instructions; four months granted for furtlier 
investigation; other particulars; pertinent cor- 
respondence molosod. 

Political affairs. Presented reply of the President of 
the United States to President Yuan’s message of 
congratulation on the occasion of Mr. Wilson’s 
mainage. Incloses memoranda concerning a con- 
structive policy for China and regarding the use of 
foreign experts in the Chinese administration. 

Railway negotiations. Suggests either (ieniand for 
removal of British chief engineer for not adhering 
m his specifications to principle of equal opportu- 
nity or, preferably, action by tho American group, 
prevailing on bankers to issue orders placing 
standards of the other nations on equal footing. 

Political affairs. Supplements dispatch No. 918, 
Authority of Yuan further wc^enod through 
delay in expelling the Yunnanese from Szechuan 
and through the failure to announoe a definite 
policy with respect to the constitution. 

Same subject, informed that President had dis- 
cussed the question of an early convocation of Far^ 
liament with his Council of State. Commission 
charged to asceitain whether, under existing laws, 
the members elected for the citizens convention 
could tie summoned as a parliament, or whether a 
new flection would be necessary. Accession to the 
throne is indefinitely postponed. 


Page 


166 


51 


51 


103 


167 

103 


53 

63 


55 


65 


103 


56 


168 


59 


60 





UST OT PAPERS 


XEX 


CEINA—Oontinaed 


No. 

Elom and to whom 

Date 



1916 

966 

Same to same.^.*. 

Feb. 24 


do_ _ _ 

do 

968 



„-do 


Mr. Lansing to Mr. 
Reinsch (telegram). 

Feb. 25 


Same to same 

Apr. 6 

969 

Mr. Reinsch to Mr. Lan- 
sing. 

Mar. 9 


Same to same (telegram) . . . 

Mar. 18 

989 

Same to same......... 

Mar. 21 


Same to same (telegram)... 

1 

Mar. 22 



Mar. 31 

1015 

Same to same 

Apr. 4 


Same to same (telegram) . .. 

Apr. 6 

Apr. 7 


Mr. Reinsch to Mr. Lan- 
sing (telegram). 

Apr. 11 

88 

Mr. Peck to Mr. Lansing.. 

...do 

556 

Mr, Jossdyn to Mr. Lan- 
sing. 

Apr. 12 


Mr. Reinsch to Mr. Lan- 
sing (tdegram). 

Apr. 18 


Subject 


Page 


Same subject. Unfounded and exaggerated reports 
concerning condition of aHairs in China emanating 
from Japanese pi ess have given rise to a public 
behef of widespread and active Japanese intngue. 

Same subject Foimal proclamation of monarchy, 
which was soon to be issued and accompanied by 
the promulgation of a constitution guaranteeing a 
parliament elected by the people and with ceitain 
powers of financial and general legislation, has been 
postponed. Reason. 

Same subject. President announced that m future 
the Cabinet will have a weekly meeting under the 
presidency of the Secretary of State for the discus- 
sion of matters of public policy; that there will be 
regular conferences between groups of mmisteis of 
state and the chief advisers m the respective 
branches for the discussion of measures of govern- 
ment. 

Railway negotiations. Your telegram Feb 21, mid- 
night. American Government expects Chinese 
Government to enforce observance of agreement 
by engineers and managmg director or to remove 
and replace them. 

Same subject. Incloses copy of a letter from the 
American group concemm| reports of a Russo- 
Chinese agreement permitting Russia to build a 
railroad from Harbm to Aigun with a branch to 
Tsitsihar; instructions in case of existence of such 
an agreement. 

Political affairs Government troops are reported to 
have scored successes m Szechuan Situation in 
Kikiang and Hunan is uncertain. 

Same subject. Government received telegram from 
the authorities of Kuangsi in which they demanded 
cancellation of the Imperial movement and threat- 
ened joint action with Yunnan. 

Same subject. Officials of Kuangsi have sided with 
revolutionists and the military governor of Kwant- 
ung can not bo absolutely relied upon by the Cen- 
tral Government. Situation in Province of Hunan 


61 


62 


63 


16S 


64 

65 


65 


is also very uncertain. 

Same subject. Government has decided to promul- 
gate mandate canceling monarchy. Yuan will re- 
main President. Many others who disapproved 
monarchy will again actively Jom the Govern- 
ment. 

Same subject. Much imeasiness among native pop- 
ulation. Certain troops reported to oe ready for 
revolt 

Same subject. Incloses translation of the mandate 
canceling the monarchy. Gives reasons for and 
result of this cancellation. 

Same subject. Prospects more favorable for internal 
peace. 

Loan negotiations. Loan contract for $5,000,000 be- 
tween The Chinese Government and Lee, lliggm- 
son & Co. 

Political affairs. The fact that revolutionists are 
without united policy and that no presidential 
candidate could command general allegiance is 
making leaders of all factions consider the tempo- 
rary retention of Yuan. Nanking reports consid- 
erable unrest and rumors of impending dedaration 
of independence. 

Same subject. Apr. 20 is set for an attack on the 
cities of Riaochau and Kaomi. Weihsien is also 
to be attacked. Prominent Chinese merchants, 
adherents of no political party, are being black- 
mailed by revolutionists under threat of death. 
Army of revolutionists in Tsmgtau is being 
strengthened by recruits from Manchuria. 

Same subject. Declaration of independence of 
Kwantung Province. Reports from Interior indi- 
cate that conditions there are very bad. Gives 
make-up of three parties In ffouthem China. 

Same subject. Chekiang has declared independence 
and several other provtooes are likely to follow. 
No prospect of united action except opposition to 


66 

67 

67 

71 

128 

71 


71 


73 

75 


Yuan which is mcreasmg m Dittemess. 








XX 


UST OF PAPERS 


CHINA— Continued 


No. 

From and to whom 

Date 



1916 


Same to same (telegram) . .. 

Apr. 15 


do 

Apr. 17 

1031 

Same to same 

Apr. 18 


Same to same (telegram) 

Apr 20 

1037 

Rame t.n same - * 

.—do 


Same to same (telegram) 

Apr 21 



...do 


do - — 

Apr. 24 

344 

Mr. Josselyn to Mr. Lan- 

—do 


smg. 



Mr Beinsch to Mr. Lan- 

Apr. 27 


sing (telegram). 



Same to same (telegram).— 

...do 

1053 

Same to same 

Apr. 28 

1056 

do 

-,,do,- 


Same to same (telegram) . - 

May 6 


Mr. Lansing to Mr. 

-..do 


Reinsch (telegram). 



Mr. Reinsch to Mr. Lan- 

May 10 


sing (telegram). 






Subject 


Page 


Same subject Bitter factional struggle; Kwangtung, 
Chekiang quiet In Peking Vice President and 
Yuan cooperate Govcinors asking the President 
to withdraw Latter is looking for suitable man to 
form coalition cabinet 

Huai River conservancy loan. Reports conclusion 
ftf pr elimin ary contract for improvement of Giand 
Canal in Shantung Provmce, as part of Huai 
River conservancy plan The Chinese Govern- 
ment felt obliged, under the Treaty of 1808, to oflor 
participation m the loan to the Germans 

Political affairs. States most cardinal spceific fsicts 
upon which the situation at present hinges Mili- 
tary governors of Central Ohma are expected to 
upon Yuan to retire. 

Huai River conservancy. The contract reported m 
bis Apr. 17 the most favorable evoi obtained by 
foreigners Prompt ratification urged 

Railway negotiations. Incloses copies of a railway 
loan recently concluded between tho Chinese Gov- 
ernment and tho Russo-Asiatic Bank. 

Political affaiis State of uncertainty continues. 
Revolutionists have no policy but to oust Yuan. 
Tho Government, on account of stoppage of tho 
salt income through action of Japanese bank and 
generally dumnishcd revenue, will be without 
funds within a month. Very serious situation 
threatens unless unity and reorganization can bo 
eHected without delay. 

Huai River consoivancy loan. Further information 
about the Shantung Canal loan. 

Political alLurs. President has issued mandate that 
hercaftet the administration will be camecl out by 
a cabmet responsible to Parliament, to be elected 
within three months. Names of cabinet mem- 
bers 

Same subject. Incloses copy of a circular telegram 
addressed to the vanous Consuls from tho tutus of 
tho four southern Provinces Outlying districts 
havo been in the bands of tho so-callotl people’s 
army. Bice supply cut off in many places in tho 
interior. 

Same subject Cabinet has taken over administra- 
tive powers; also control over the militai y Pro- 
vincial assemblies and national assembly to bo 
called immediately; all Government revenues and 
expenses to bo audited, results published; dis- 
sident elements to be won over without the use 
of arms. 

Huai River conservancy loan. Further informa- 
tion. Tho Chinese Government observed the 
tieaty with Germany by giving notice. No 
treaty obligation has accrued iis to Japan. 

Loan negotiations. Incloses translation of power 
granted to the Chinese Mmislor to negotiate a loan 
with Lee, Higginson & Co. 

Hum River conservancy loan, fiefoi .s to his No. 92:i 
ot Fch. 4. Enlarges on his foiegomg tolegianus; 
the Kiangsu negotiations are going on. 

Political affairs. Government bodies arc working 
quietly for the reunion of all tho Province.^. The 
elimination of Yuan is evidently being prepared to 
take place as soon as complete control of situation 
is assuied to Tuan and associates. 

Railway negotiations. American I»ocomollvo Sales 
Corporation advised Ministry of Comnumications 
deshes to obtain four-year loan of .$1,(XH),(K)0 ui>on 
socuiity of revenue. Your opinion of valuo of 
socuiity rc(ju&sted. Also confirmation of reported 
purpose of loan to complete Peking-Kolgan Rail- 
way extension. 

Politick affairs. Revolutionary force of thousand 
armed men including many Japanese was landed 
at Woi Hsien May 4 from Tsingtau by a siiedal 
train and attacked the city, which Is reiiorted 
taken. Japanese refused to carry Ohlnese force 
from Tsingtau on the ground that neutrality must 
be mainf lined. Chinese protested to Japanese 
Legation and Foreign Office. 


76 


106 


76 


106 

ICO 

77 


107 

77 


78 


7i> 


107 


133 

107 

79 


178 


79 


LIST OF PAPERS 


XXI 


CHINA— Continued 


No 


From and to whom 


Date 


Subject 


Mr. Lansing to Mr Koo... 


Mr. Reinsch to Mr. Lan- 
sing (telegram). 


Same to same (telegram) . 

do 


1072 

1075 


1081 


1082 


do 

Same to same., 
.—do 


1916 

May 11 


...do— 

May 12 

May 13 

May 15 
-do..-. 


Same to same (telegram) ... 


Same to same.. 


do... 


Mr. Koo to Mr. Lansing... 

Mr. Reinsch to Mr. Lan- 
sing (telegram). 

Same to same (telegram) ... 

Same to same... ...... 


1094 


,.do., 


-do 

May 16 


May 17 


...do.—l 

May 19 
May 23 

May 24 
May 26 

May 31 


Agreement between the Umted States and China ex- 
tending time for ^pointment of the commission 
under Art 2 of the Treaty of Sept 15, 1914. Exten- 
sion suggested. 

Political affairs. Japanese are reported to be usmg 
agents to create panic Tsinanfu and to urge Gover- 
nor General to declare independence. Railway 
station headquarters of armed brigands with 
whom Chinese can not mterfere because station 
policed Japanese troops. 

Railway negotiations. Your telegram of May 6, 
4 p. m. Loan in question would seem to be amply 
secured Pm pose of loan for the cost of extensions 
of Ihe service both on railway and telegraph stock. 

Political affairs Conference of representatives of 
governois of 17 Iqj^al provinces is called to meet 
Nanking May 16 Prmcipal matter for considera- 
tion is the further continuance in ofidee of Yuan. 

Hua 1 River conservancy loan. Contract for Kiangsu 
section of the Grand Canal has been signed. 

Same subject. Refers to his No. 1056 of Apr. 28 and 
enlarges on his telegram of May 16. 

Same subject. Corrects a minor point of his 1056 of 
Apr. 28. 

Political affairs Selection by southern leaders of 
Ts’en Ch'un-hsnan as commander in chief and Li 
Yuan-hung as President has resulted m orystalliz- 
ing suppoit for Yuan. Northeastern generals do 
not propose to submit to dictation. In Tsinanfu 
('hineso and Japanese ruffians continue reign of 
terror. 

Same subject. Discusses the effect of the announce- 
ment by the southern leaders of their recognition 
of Li Yuan-hung as President and of the organiza- 
tion of a provisional government in the southern 
Piovmces. Rumors of impending unrest among 
the troops in connection with their monthly pay. 

Railway negotiations. Reports upon an agreement 
for a lailway concession concluded between the 
Chinese Government and the Siems-Carey & Co. 
(Ltd.). 

Same subject. Acceptance of the suggestion made 
in his May 11. 

Railway negotiations Reports preliminary railway 
contract between China and the American firm of 
Carey. 

Political affairs. Resignation of Ynaa is believed 
impending. 

Same subject. Refers to cable of May 24, 11 p. m. 
Discusses further the protection of Yuan after 
resignation. 

Same subject. Nanking conference adjourned on 
May 27 without producing any decisive result, 
Szechuan and Hunan have declared their indepen- 


50 

80 

179 

80 

109 

109 

119 

80 

81 

179 

50 

181 

82 

82 

88 


17 


Mr. Polk to the American 
Group. 


June 2 


Mr. Reinsch to Mr. Lan- June 6 
sing (telegram). 

Mr. Koo to Mr. Lansing..,- ...do...^ 


Mr. Laxisi]» to Mr. Koo... 
The Ameri^ Group to 
Mr. Lansing. 


Jujie 8 


Mr. Reinsch to Mr. Lan- 
sing (telegram). 


June 0 


Railway negotiations. Your letter of Mar. 31. 
Asks whether satisfactory understanding has 
been reached with reference to the participation 
of American bankers in furnishing necessary 
funds under the contract reported to have been 
made by China with the Russo-Asiatlc Bank. 
Does the Amencan group desire any protest to be 
made in its behalf to the Chinese Government? 

Political affairs. General Li to take oath of office 
to-morrow morning as President. British and 
allied ministers assured that presidency would be 
allowed to devolve constitutionally upon Li 

Death of President Yuan. Shih-k*ai and succession 
of Pre^dent Li Yuan-hung. Notification of the 
death of President Yuan, and assumption of the 
presidency by Vice President Li. 

Same subjert. Acknowledgment of his June 6 ....... 

Railw^ negotiations. Department's letter of June 
2. Have Uo knowledge of any negotiations with 
American bankers with respect to their participa- 
tion In the financing of the contract mentioni^. 
No protest to the Chinese Government is desired 
on behalf of the American Group at this time. 

Politics^ affairs. Li holds reins of Government with- 
out opposition. No doubt southern Prortnees 
will demand changes in the personnel of Cabinet. 


181 


84 


98 


98 

182 


84 







xxn 


UST OF PAPBES 


OHIN A—Oontmued 


No. 


1118 

1119 

1120 


U34 

1143 


1153 

U62 


From and to whom 

Date 


1916 

President Li to President 

June 9 

W ilson ’ (telegram) . 

Mr Reinsch to Mr. Lan- 

June 18 

sing (telogram). 


RftTtifi to samft _ _ _ 

June 14 

Ho . _ . 

...do 

do 

__.do 

Mr. Lansing to Mr. 
Reinsch (telegram). 

June 16 

Mr. Reinsch to Mr. Lan- 

June 19 

sing (telegram). 

Mr. Lansing to Mr. 

June 20 

Reinsch (telegram). 


Mr. Reinsch to Mr. Lan- 

June 26 

sing (telegram). 


American International 

June 29 

Corporation to Mr. Lan- 
sing. 


Mr. Reinsch to Mr. Lan- 

June 30 

sing (telegram). 


Mr. Lansing to Mr. 

July 3 

Reinsch (telegram). 

Mr Reinsch to Mr. Lan- 

July 6 

sing. 

Same to same 

July 14 

July 26 

The American Group to 

Mr. Lansing. 

Mr. Reinsch to Mr. Lan- 

July 31 

sing. 

Same to same _ * , , . 

Aug. 2 

Aug. 10 

6ame to same (telegram) 

Mr. Lansing to Mr. 

Aug. 12 

Reinsch (t^egram). 

Mr. Reinsch to Mr. Lan- 

Aug. 23 

sing (telegrana)* 


Subject 


Page 


Death of President Yuan. Message of th ank s. 


90 


Political affairs. Official statement reported gi-von 
out in Japan to the efiFeet that foreigners in China 
desire more protection has no foundation. Fed- 
ing of confidence in the Republic obtains. 

Railway negotiations. Transmits tort of railway 
agreement between the Chinese Government and 
the Siems-Carey Co. 

Political affairs. Any proposal relating to changes 
in the force patrolling railway should be reported 
to the Dean of the Diplomatic Corps in order to be 
submitted to the ministers interested. American 
commandant so instructed. Such a change would 
only serve to irritate the Chinese 

Death of President Yuan. Reports his conveyance 
of condolence of this Government and incloses 
correspondence. 

Huai River conservancy loan. The American In- 
ternational Corporation has approved in principle 
the Shantung agreement and readjj to approve 
Kiangsu agreement if made provincial as well as 
Government obligation, similar to the Shantung 
agi cement. 

Same subject. States the objections to making the 
Kiangsu contract provincial as well as national. 

Same subject. Detailed instructions for Shantung 
and Kiangsu agreements, both to be provincial as 
well as national. 

Same subject. Renews his objections to making 
Kiangsu agreement provincial as well as national; 
suggestions for overcoming the diniculty. 

Same subject. Incloses copy of telegram they are 
sending to their Peking represcntativo.in regard 
to solving the problem raised by Mr. Rcinsch. 
Requests pood offices for realizing the suggested 
airangement. 

Pohtjcal affairs. Mandates Issued summoning Par- 
liament to resume sessions. Nanking provisional 
constitution and presidential election faw of Oct. 
5, 1913, to continue in force. All treaties con- 
cluded subsequent to dissolution of Parliament in 
May, 1914, are to be recognized as valid. Also all 
laws and mandates excepting those specifcally 
canceled by mandate. 

Huai River conservancy loan. Instruction to coop- 
erate with representative of American Interna- 
tional Corporation. 

Death of President Yuan. Conveys the thanks of 
President Li for the attendance of President Wil- 
son at a memorial service for the late President 
Ynan, 

Political affairs. President is prepared to meet the 
demands of the sonthem leaders by reviving the 
provisional constitution of 1912 and summoning 
the rump parliament. Mandate has been prepared 
for issue, providing for the arrest and trial of the 
principals in the monarchical movement. Navy 
declares its independence of the cabinet at Peking. 
Appointment of cabinet officers. 

Loan negotiations. Reviews circumstances attend- 
ing their entrance into Chinese business and with- 
drawal thereflrom. States conditions for reen- 
tranco. 

Political affairs. The breach betweep the Chin 
P’u Tang and the Kuo Min Tang has become 
more apparent. Further comments on political 
situation. 

Same subject. National Assembly was convoked 
yesterday and opened by the President, who also 
took the formal oath of office. Incloses an account 
of the opening of the Parliament. 

Railway negotiations. The Russian Minister has 
stated to the Chinese Government that any con- 
cession outside the Great Wall would violate 
Russia’s option. 

Same subject. Refers to bis Ang. 10 and instructs 
him to safeguard American int^ts and to try to 
obtain a copy of the option mentioned. 

Same subject. Reply to Demirtment’s Ang. 12. 
The Minister for Foreign Affairs denies that an 
agreement exists giving Rnssia prelhrenoe in 
r^on affected^ 


84 


182 

85 


99 

119 


120 

120 

121 

122 


85 


122 

100 


134 


90 


91 


18$ 


189 

m 


UST OP PAPERS 


xxm 


CHINA— -Oontinued 


No. 


From and to whom 


Mr. Lansing to Mr. 
Bcinsch (telegram). 


1187 


Mr . Eemscb to Mr. Lan- 
sing. 


1188 


Same to same 

Same to same (telegram) 


.do. 


113 


Mr. Feck to Mr. Lansing.. 


116 Same to same 

26 Mr. Koo to Mr. Lansing... 


1224 


Mr, Remsch to Mr. Lan- 
sing. 


Mr PolktoMr. Koo 

Mr. Reinsch to Mr. Lan- 
sing (telegram). 

American International 
Corporation to Mr. 
Lan.sing. 

617 Mr Lansing to Mr 
licinsc'h. 

Mr. Rcir.sch to Mr, Lan- 
sing (tologram). 

1244 Same to same 


American Intenintimal 
Corporation to Mr. 
Lan.smg 

Departmont moriiorandura. 


1262 


Mr. Reimsoh to Mr T.nn* 
sing. 


Same to same (tolcgnim) ... 


Mr. Lansing to Mr. 
Helnscli (tologram). 


Mr. Folk to Mr. Rolnsoh 
(telegram). 


Mr Kolnsoh to Mr, Lan- 
sing (telegram). 


Date 


Subject 


Page 


1916 


Aug. 24 

Sept. 4 

Sept 6 
Sept 15 

Sept. 25 

Sept. 26 

Oct. 6 
Oct. 13 

...do 


Oct. 19 
—do 

Oct. 23 

Oct 23 

Oct. 20 

Oct. 27 

Oct 30 


Same subject. Refers to his Aug. 23 and Depart- 
ment’s No 419 of Apr. 6; instructs opportunely to 
call attention of Criinese Government to agree- 
ment with American Group ratified Jan. 20, 1910, 
and statements of Group that their nght was never 
formally relinqmshed. 

Pohtical affairs. The Cabinet was approved by both 
the House of Representatives and the Senate. Op- 

S osition to some of the members. It seems un- 
kely that financial stability can be restored 
without a foreign loan. 

Same subject. Cites incidents which show disre- 
gard for the authority of the Central Government. 
Loan negotiations . Chinese minister at W ashington 
has been authorized to negotiate loan with western 
bankers. 

Huai River conservancy loan. Japan intervenes in 
conservancy negotiations, citing the treaty be- 
tween Chma and Germany of Mar 6, 1898, and 
the treaty between China and Japan of May 25, 
1915. Comments. 

Pohtical affairs. Revolutionist troops at Weihsien 
and Choutsun are repoited to have reached an 
understanding with the Central Government and 
have submitted to it. More peaceful conditions 
are being established. 

Same .subject. Rebel organization at Kaumi sub- 
mitted to tho Central Government some days ago. 
Death of President Y uan. Incloses autograph letter 
of President Li announcmg his assumption of tho 
Presidency on June 7, 1916. 

Huai River conservancy loon Refers to his No. 
1066 of Apr. 28. Reports progress of negotiations 
for Grand Canal contract in Shantung Province 
and the Japanese intervention therein; contrast 
with tho situation in Kiangsu Province; criticizes 
methods of negotiation. Incloses memoranda by 
the Japanese Legation and the Shantung Provin- 
cial Government, and by tho American Minister 
and Socretaiy of Legation. 

Death ol President Yuan. Acknowledgment of his 
Oct. 13. 

Railway negotiations Russia protests against the 
Fengchcn-Ninghsia railway concession to Ameri- 
cans; basis of protest; comment. 

Sumo subject. Reply to the foregoing; the corpora- 
tion desires to avoid implication m the contro- 
versy 

Death of President Yuan Incloses the President's 
acknowledgment of President Li’s letter, with 
instructions to forward, 

Railway negotiations. Argues against deference to 
Russia’s unsubstantiated claim by the American 
International Corporation. 

Raine subject. Transmits copies of the original and 
supplementary agreements eoucludod between the 
Chinese Ooveinmeut and the Sicms-Oarey Oo. 
Same subject, lioitoratos its position os stated in its 
Oct. 23. 


189 


92 


138 

123 


95 


95 

lOO 

123 


101 

190 

193 

101 

191 

192 
198 


I Oct. 31 

--.do 

...do. — 
Nov. 2 I 


Nov. 6 


Nov. lO 


Same subject. Review of the railway agreement be- 
tween China and Russia made In 1899 and its 
healing on tho American contract. 

Same subject. Incloses correspondence of 1899 and 
1010 between the Chinese Foreign Office and tho 
Russian M mister on this subject. 

Political ttlTairs. Qcncral Fong Kuo (’-hang elected 
Vice I’leaulont by National Assembly with har- 
inonlring effect. 

U.dlway negotiations. Refers to his Oct. 10 and 26; 
in.stnirts him to inform Potoign Office, if Russian 
priilest has been filed, that the United States can 
not recognize Russian cliiioi to e.xclU5ive sphere in 
tho district concerned, which seems not to be em- 
braced in tho region referred to in tho Chinese note 
ofJune 1,1899. 

H uai River conservancy loan. Reply to his telegram 
of Sopt. 26; instruction to inform tho Foreign Office 
that this Government reserves all American rights, 
and to report any further action by Japan. 

liailway negotiations. Reports execution oi instruc- 
tions of Nov. 2; comment. 


108 

199 

96 

205 


127 


205 





XXIV 


LIST OF PAPEES 


O HIN A— Continued 


No. 


From and to whom 


Date 


Subject 


1266 

1267 


1282 

1284 


535 

1294 

1205 


1305 

1311 

641 

1317 


Same to same. 
do 


Mr. Lansing to Contmen- 
tal & Commercial Trust 
& Savings Bank 


Mr. Eeinsch to Mr. Lan- 
mg (telegram). 

Same to same-— 


-do-. 


Same to same (telegram) — . 


Mr. Lansing to Mr. 
Remsch (telegram). 

Same to same (telogiam)...| 


Same to same. 


Mr. Reinsch to Mr. Lan- 
sing. 

Same to same 


..do.. 


,.do.. 


Mr. Lansing to Mr. 
Reinsch. 

Mr, Remsch to Mr. Lan- 


1918 

Nov. 15 


..do.. 


Nov. 16 


.do.. 


Nov. 25 
Nov. 28 
Nov 29 

Dec. 2 

Doc. 4 
Dec. 6 

Dec. 7 

Dec. 8 
...do 


Dec. 13 

Dec. 18 
Dec. 19 
—do 


Same subject. Incloses copy of his note to the For- 
eign Ofl&ce reiterating the attitude of the American 
CJovemment on the subject 

Huai River conservancy loan Refers to his 1 224 and 
reports a conversation between the First Secretary 
of the Japanese Legation and Mr. Carey, of the 
Siems-Carey Co , m which the former asseitod 
Japan’s right to all of Gei many’s former position 
in Shantung. The new Governor of Shantung is 
favorable to the Grand Canal enterprise 

Loans. In reply to oral request he mfoims thorn 
that it is alwa 3 ^ the policy of the Department to 
give all possible snppoit and protection to 
legitimate American enterprises abi oad. 

Same subject. Loan agreement between the Chi- 
nese Government and the Continental & Com- 
mercial Trust & Savings Bank of Chicago, HI. 
Text. 

Same subject. Reports ratification by China of the 
American loan of $5,000,000 

Railway negotiations. Incloses additional cor^ 
res'pondence. 

Loans. Reports discussion with the French Lega- 
tion of the sccuiity for the Amoncan loan; the 
Minister of Fmance has received a protest from the 
allied members of the Consortium against the loan; 
Chinese attitude toward the piotest. 

Same subject. Chinese Government apprehends 
that it will be reduced to fiscal dep(mdcnce on cer- 
tain powers if the Consortium insists upon broad 
interpretation of Art. 17 of the loan agreement. 

Same subject. Instruction to state to the Foreign 
Office that this Government finds no conflict of 
contracts to warrant the protest by foreign bankers. 

Same subject. Authorization to state to his in- 
terested colleagues the attitude of this Govern- 
ment toward any attempt to exclude American 
hankers from Chmese business 

Railway negotiations. Acknowledgment of his No. 
1252 of Oct. 31; restatement of Department’s atti- 
tude. 

Death of President Y uan. Reports execution of the 
instruction of Oct. 25. 

Loans. Refers to his 1284 and submits copies of 
correspondence between the Chinese Govern- 
ment and the bankers conccring the American 
loan, and the Legation’s note on the some subject to 
the Minister of Finance. 

Political affairs. The success and very status of 
Parliament is much disputed. Minister of In- 
terior and his secretary forced to resign. Much 
friction between Parliament and the Cabinet. 

Loans. Attitude of the Russian, Japanese, British 
and French Ministers toward the American loan. 

Railway negotiations. Approves his action as re- 
ported in his No. 1266 of Nov. 15. 

Same subject. Reports with repoct to the progress 
under the railway agreement of the Siems-Carey 
Co. 


Page 


206 

127 


13S 

138 

143 

207 

143 


145 

146 
146 

200 

102 

146 


06 

148 

209 

200 


COLOMBIA 


248 

33 


Mr. Thomson to Mr. Lan- 
sing (telegram). 


1916 

Jan. 26 


Same to same. 


.do. 


Mr. Betancourt to Mr. Fob. 2 
Lansing 

Mr. Lansing to Mr. Thom- do 

son (telegram). 


'Treaty of Apr. C, 1914. Reports receiving a Foreign 
Office note urging action by the United States 
Senate; a special message to the Senate by the 
President would relieve the tension existing la 
Colombia; his explanation of the Senate’s delay. 

Same subject. Incloses the note referred to in 
foregoing and amplifies his telegram. 

Same subject. Inaoses copy of translation of the 
note inclosed with the foregoing. 

Same subject. Instructs him that he may Inform 
the Colombian Government orally and confl- 
dentially that the Foreign Relations Committee 
of the Senate has reported the Colombian trea^ 
out of committee by a vote of 8 to 7, amending it to 
reduce the Indemnity from $25,000,000 to $15,000,- 
000 and make the expression of regret mutuaL 


211 


2U 

218 

218 




LIST OiF PAPEES 


XXV 


OOLOMBIA—Continned 


No. 

Prom and to whom 

Date 

Subject 

Page 



1916 



257 

Mr. Thomson to Mr. Lan- 
sing. 

Feb. 4 

Same subject. Incloses translation of a Foreign 
Office note with regard to the report of the Senate 
Committee on Foreign Relations. 

213 


Same to same (telegr^)... 

Feb. 5 

Same subject. Reply to Department's Feb. 2. 
Reports the character of the reception of the news 
of tne Senate committee's action on the treaty. 

214 


. — do. 

Feb. 10 

Same subject. Probable action by Colombia in 
view of the action by the Senate committee. 

214 

35 

Mr. Betanoomt to Mr. 
Lansing. 

Feb. 11 

Same subject. Requests that the President send a 
special message to the Senate on the treaty. 

215 


Mr. Lansing to Mr. Stone— 

Feb. 14 

Same subject. 'Transmits copy of Mr. Thomson's 
telegram of Feb. 10. 

215 


Mr Thomson to Mr. Lan- 
sing (telegram) 

Feb. 15 

Same subject. Expresses the gratitude of Colombia 
for the interest taken by the President and the 
Secretary of State in the approval of the treaty; 
gives his own reasons for considering its approval 
of the greatest importance. 

216 


COSTA EICA 


Mr. Hale to Mr. Lansing— 

1916 

May 2 

Menage of the President, Alffedo Gonzalez, to the 
Congress. Transmits pamphlet containing the 



message. 


DOMINICAN EEPUBLIO 


80 


Mr. Russell to Mr. Lan- 

1916 

Jan. 3 

sing (telegram) . 

Jan. 19 

Same to same (telegram)-— 

Mr. Lansmg to 3Vdr. Rus- 

Jan. 24 

sell (telegram). 


Mr. Russell to Mr. Lansing 

Mar 14 

(telegram). 


Same to some (telegram) 

Apr. 16 

An 

Apr. 16 

do 

— _do— -- 

do 

Apr. 17 

Apr. 27 

Apr, 29 

do . , 

Mr. Lansing to Mr. Rus- 

sell (telegram). 

Mr. Russ^ to Mr. Lansing 

May 1 

(telegram). 


Mr. Lansing to Mr. Russell 
(telegrazxO 

May 2 

Mr. Russell to Mr. Lansing 

-do-.. 

(telegram). 



Political aifairs. Changes in Cabinet personnel 
threaten an uprising. 

Same subjecst 

Same subject. Beply to his Jan. 8 and 19. Eefersto 
Department's Nov. 26 and Dec. 2, 1916, and in- 
structs him to inform President Jimenez that this 
Government, If requested, will funush forces nec- 
essary to suppress msurrection and maintam 
order; urge the President not to resign and to 
keep his govemment efidcient and honest. Can 
not the President be induced to reconsider his 
decision as to constabulary or as to financial ad- 
viser, or both? 

Same subject. The Govemment continues its weak 
policy, but the arrive of the Castine has had a 
good effect. 

Same subject. Desiderlo Arias has usurped the 
Ministry of War; all factions flock to him except 
that of Velasquez. 

Same subject. If President Jimenez resigns Con- 
gress wfll surely dect Arias to the Presidency; 
complications would thereupon ensue; another 
war vessd is advisable. 

Same subject. President Jimenez is practically a 
prisoner in his country house, but is determined 
not to resign. 

Same subject. Arias yields; the President fully 
maintained in authority. 

Same subject. Arias still aggressive The Presi- 
dent is rdying on the Legation to solve the prob- 
lem. He is still restrained in his authority. A 
battleship and a large force would have a salutary 
effect. 

Same subject. This Govemment intends to sup- 
port the constituted authorities by all proper 
means; Admiral Caperton at Port-au-Prince has 
been directed to cooperate with the Casiine. 

Same subject Arias has induced the House to i>as8 
an impeachment bill against the President, mak- 
ing a show of military force. The President has 
dismissed Arias. Our Govemment should not 
parley with Arias. 

Same subject. Instructs him to afford the President 
all support and to notify both factions of the inten- 
tion of this Government. 

Same subject. The Senate has approved the House 
bill of impeachment; the Legation has advised the 
President to avoid provoking a conflict: Arias is 
in full control of the city; conference to-morrow 
between Arias and the commanders of the Prairie 
and Caeiin^, 


220 

220 

220 


221 

221 


222 

222 

222 


222 


222 

228 

228 











XXVI 


LIST OF PAPERS 


DOMINICAN EE PUBLIC— Continued 


No. 


Prom and to whom 


Same to same (telegram) . 
do 


Date 


1916 

May 3 
May 6 


Subject 


Same subject. Bequests additional ships in view 
of possible trouble if troops are landed. 

Same subject Fighting has begun and Prairie has 
landed force to protect the Legation. Guard from 
Castine is protecting foreigners at Haitian Lcga- 


Page 


223 

224 


__.do 

...do 


May 6 

Mr, Lansing to Mr. Russell 
(telegram) 

...do 

Mr Russell to Mr Lansing 
(telegram) 

May 7 

Same to same (telegram).,. 

...do 

Mr Lansing to Mr. Russell 
(telegram). 

...do.— 

Mr. Russell to Mr Lansing 
(telegram) 

May 10 

Admiral Gaperton to Mr. 
Daniels 

May 13 

Mr Bussellto Mr. Lansing 
(telecrram). 

Same to same (telegram) ... 

May 14 

May 15 

Mr Zielinski to Mr. T^an- 
sing 

May 17 

Mr. T^ansmg to Mr .Russell 
(telegram). 

-do-,- 

Mr. Russell to Mr.Lansing 
(telegram). 

May 18 

Same to same (telegram) ... 

May 29 

Admiral Gaperton to Mr, 
Daniels (telegram). 

Mr. Russell to Mr Lansing 
(telegram). 

May 30 

June 2 

Mr. Polk to Mr Russell 
(telcgiam) 

Mr. Russell to Mr.Lansing 
(telegram). 

June 3 

June 4 

Same to same (telegram) ... 

. June 5 

Same to same (telegram) ... 

, June 6 


tion. 

Same subject. More ships needed 

Same subject. President Jimenez is out of animu- 
mtion and requests that American forces take the 
city; if we do this, it should he for ultimate occu- 
pation and not for Jimenez, 

Same subject. Two destroyers ordered each to 
Puerta Plata, Macons and Sanchez; Panther and 
one destroyer to Port-au-Prince to report to Ad- 
miral Gaperton. 

Same subject. In view of presence of Ameiican 
forces, our position is favorable for ultimately ob- 
taining permanent reforms under negotiation since 
last October. 

Same subject. President Jimenez has irsignod. 
Urges retention of American forces as at present. 

Same subject. Reply to liis May 6; Admiral C aper- 
ton reports that the President has canceled reciuest 
that city be occupied by our forces and has placed 
resignation m your hands. It is particulaily dc- 
siiable that the President be upheld; previous 
mstmctions grant authonty for any advisable 
action 

Same subject. He is upholding the constitut.ionul 
authonties; summaiy of military and political 
situations; intervention seems mcvitable. 

Same subject. At an interview with the rebel lead- 
ers he delivered to Anas an ultimatum ro(juirIng 
surrender by May 15 

Same subject Anas and the rebel forces have aban- 
doned the city. 

Same subject. Congress should not bo allowed to 
elect a President until peace is thoroughly restored; 
requests specific instructions. 

Same subject. Incloses copies of circulais issued by 
Admiral Gaperton and of one by Sefior Troncoso, 
the civil authority. • 

Same subject. Reply to his May 15, instruction to 
have Congress delay action on presidential election 
until the country is pacified and the occasion favor- 
able foi the elunmation of Anas; to report whether 
complete disaimament of the revolutionary ole* 
ment may now be opportunely effected; and to 
give his opinion as to the best procedure in regard 
to the Presidency. 

Same subject. Replyto Department's May 17. The 
House, ignoring his request for delay, has elected 
Doctor llenriquez to he President; the Senate has 
not yet acted. Admiral Gaperton and he have 
addressed to Congress a demand to postpone oloc* 
tion, which will be enforced if ignored. Jimonoz 
has quit the job and can not bo rehahiUtated. 

Financial affairs. Beliovas time now opportune for 
enforcing our interpretation of Art. 3 of the Con- 
vention by restonng financial control. Sugges- 
tions. 

Political affairs. He has directed landing of forces at 
Pucito Plata and Monte Cristi. 

Same subject. All probability Hennquez will bo 
elected on Monday unlc-ss Senators are arrested. 
Whoever IS chosen should bn Informed of our desire 
and intention. Wo should proc'oed with occut>n- 
tion and with appointment of financial conlronor. 

Financinl affairs. Whom have you in mind for 
financial controller'^ 

Political affairs. Arrest of Senators planned by the 
Coundl of Ministers in order to r>rovnnt election of 
Henriquez to the Presidency. If the Senate nover- 
tholoss oleota him, will our Government recognize 
him? 

Financial affairs. I had the receivership In mind for 
controller until definite arrangement can be made. 
I have notified the Council of Minist^that finan- 
cial control will be established at once. 

Political affairs. Report of incidents related to the 
attempted presidential election. 


224 

224 

224 


224 


225 

225 


225 

226 

227 

227 

228 
220 


229 


249 

230 


250 


250 

281 


LIST OJ’ PAPERS 


xrm 


DOMINICAN BEPPBLIO-Oontinued 


No 


From and to w horn 


Same to'same (telegram).— 


.do. 

.do. 

.do. 


106 


Same to same. 


107 do 

Same to same (telegiam)... 

110 Same to same 

Same to same (telegram) — 


Mr Polk to Mr. Bussell 
(telegram). 

Mr. Russell to Mr. Lan- 
sing (telegram) 


Same to same (telegram)... 


.do. 


.do. 


L do 


Mr. Lansing to Mr. Russoll 
(telegram). 


Seine to same.. 


Mr. Bussell to Mr* Lansing 
(telegram). 


Date 

Subject 

Page 

■tnio 



June 9 

Financial affairs. The receivership must have m- 
structions as to assumption of financial control, and 
additional help, former Deputy General Receiver 
Edwards recommended. 

250 

June 14 

Political affairs. Ilennquez has withdrawn his can- 
didacy and the Senate nas agreed on Castro for pro- 
visional President. 

231 

June 17 

Financial afiaiis Protest of Domimcan Govern- 
ment against financial control 

261 

Juno 20 

PohticaJ affairs. No immediate election of President 
seems piobable. 

231 

__-do 

Financial affairs. The receivership has taken charge 
of eontrolleiship and internal revenue collection 
is being organized. 

251 

June 24 

Same subject. Indoses copies of piotest of Domim- 
can Government agamst financial control by the 
XJ mted States, which began to be effective on J une 
16. 

Pohtical affairs. Incloses copy of the proclamation 
issued by Admiral Caperton m regard to the ad- 
vance of our forces on Santiago 

261 

June 26 

231 

July 7 

Same suDject. The Fourth Regiment of Maimes 

1 have entered Santiago without opposition, Arias 
has suiiendered. 

232 

July 13 

Same subject. Discusses the need for disposing of 
Anas and his Congress. 

232 

July 26 

Same subject. Congress has elected Dr, Francisco 
Hennquez to the piovisional Presidency; he is a 
brother of Dr. Podenco Ilenriquoz who was 
chosen by Congress on prehmmary readings but 
whom we refused to rocogmze. 

233 

Aug. 2 

Same subject. Requesis liis opinion as to the advis- 
ability of recognizing or withholding recognition 
of the provisional President 

233 

i 

Aug, 4 

Same subject. Reply to Department’s Aug. 2. 
Eocogmtion should be conditioned on amendments 
to the convention embracing the reforms hereto- 
fore suggested. 

233 

Aug. 10 

Same subject. Provisional President, after bemg 
plainly informed of the position of our Govern- 
ment in regard to Arias, said “You may say to 
your Government that with the help of the 
United States I intend to establish a government 
of ordei that will guarantee the peace and pros- 
perity of the country*’. 

Financial affairs. Disbursement of Dominican 
funds suspended until a complete understanding is 
reached as to certain articles of the convention or 
until the Domimcan Government is amicable. 
As we are to insist on our interpi station of the con- 
vention as to financial control and constabulary, 
it is advisable to formulate all other reforms we 
consider necessary other than those outlmed in 
Department’s Sept. 16, 1916, 

Pohtical affairs. l5ominicau Government contem- 
plates sending a commission to Washington; this 
should bo discouraged. Gives a summary of the 
points of a draft memorandum for the provisional 
President to submit to the Department, providing 
for decrees of acceptance of the Hatus am and of 
measures to carry out the demands of this Govern- 
ment precedent to recognition. 

234 

Aug. 18 

' 

262 

Aug. 25 

> 234 

Aug. 26 

Same subject. The provisional President says it 
is not within his power to deereo acceptance of the 
iiatut quo, other aspects of his presidency 

234 

-.do 

Same subject. Refers to his Aug 4; the provisional 
Govemmont will not be recognized until favorable 
to our interpretation of the convention as to con- 
trol, constabulary, etc,, and proves itself free from 
domination by Arias, who must be anoslcd if he 
attempts to leave Santiago oi Incites revolution. 

Same subject. Reply to his Aug . 25 and 26; mstraots 
him to discourage the commission plan: gives fur- 
ther suggestions as to the decree desired. The 
Depaitmnnt will continue its policy in regard to 
disbursement of finances and recognition of the pro- 
visional Government until proposals are definite 
and it is assmed that revolutionary infiuenoes in 
the Cabinet are terminated. 

235 

Aug. 29 

236 

Sept. 5 

Same subject. Submits a proposition made by 
President Henrlquez speciTytng his Idea of the 
concessions to be made in exchange for recognition; 
oomments thereon. 

, 236 





xxvm 


LIST O'F PAPERS 


DOMINICAN REPUBLIC— Continued 


From and to whom 

Date 

Mr 1 .ansing to Mr. Russell 
(telegram). 

1916 

Sept 8 

Mr. Russell to Mr Lansing. 

Sopt 14 

Same to same (telegram)... 

...do.— 


Sept 18 
Sept. 21 

Mr. Lansing to Mr. Russell 
Ctelegiamj 

Mr Russell to Mr. Lansing 

Sept. 25 

(telegram) 

Mr.Lansing to Mr.RussoU 
(telegram). 

Sept. 30 

Mr. Russell to Mr Lansmg 

Oct. 4 

(telegram) 


Mr. Polk to Mr. Russell 

Oct. 10 

(telpgiam). 


Mr Brewer to Mr. Lansmg 

Oct. 24 

(telegram). 


Same to same (telegram) 

Oct. 26 

Mr Lansmg to Mr. Brewer 

Oct. 28 

(telegram). 


Mr Brewer to Mr Lansmg 

Oct. 29 

(telegram). 


Same to same (telegram)—. 

Oct. 30 

do 

Nov. 20 

1 Nov. 22 

Mr. Lansing to the Presi- 

dent. 


The President to Mr. Lan- 

Nov. 26 

smg. 


Mr.Lansmg to Mr.Daniels- 

Nov. 27 

Mr.Lansmg to Mr. Brewer 
(telegram). 

— do-.- 

Mr. Brewer to Mr. Lansing 

Nov. 29 

(telegram). 


General Mclnts^e to Mr. 

Dec, 2 

Baxter (telegram). 

Mr. Brewer to Mr, Lansing 

Dec, 4 

(telegram). 

Mr. Ferdomo to Mr. I^an- 

—do i 

aing. 


No. 


Subject 


Page 




Same subject. Reply to his Sept. 6; the proposition 
submitted is insufficient to change the Depart- 
ment’s present attitude. 

Same suDject Rccomnionds not recoding from our 
position as to constabulary, butsuspension of pay- 
ments is making a condition that should be 
lemedied. 

Fmancial affairs Gives text of a decico which tlio 
Dominican President is willing to promulgate in 
regard to financial control. 

Political affairs. Ai las arrested for embezzlement 

Financial affairs. The Dcp:irtment considers the 
decioe quoted m his Sept 14 unsatisfactory, before 
submitting tentative countei pi opositions, the Oo- 
partment desires his opinion as to the best way of 
effecting reforms, by presidential deciee approved 
by Oongioss or by submission first to Congress. 

Same subject. Reply to the foregoing 


Same subject. Gives text of Department’s counter- 
propositions as to rural guard and financial conti ol, 
ancf suggests their publication. 

Pohtical affairs. The situation is so complicated 
that he ought to go to Washington for conference. 

Same subject Instincts him to come to Washington 
for conference. 

Same subject. Captain Low and Sergeant Atwood 
killed and Lieutenant Morrison wounded in arrest 
of the bandit Baptista, who was killed; Rojas 
arrested. 

Same subject. Three Dominicans killed in attack 
on Marine patrol 

Saine subject. Refers to his Oct 24 and 26; asks 
wnetner or nothe thinks American forces have, suffi- 
cient control to prevent future outbreaks without 
declaration of martial law. 

Same subject. Dommicau officials intimate that we 
arc responsible for recent occurrences. 

Same subject. Reply to Department’s Oct 28. 
Situation sufficiently under control not to loquire 
martial law; its immediate declaration would not 
have good effect. 

Same subject. Electoral colleges convoked for Doc. 
3 to elect Senators and Deputies; if elections are 
held it will probably result in a victory foi Anas: 
comment. 

Same subject. Incloses statement of couclasions 
reached by the Departments of Slate and Navy as 
to the course of action proper to take in the Doniin- 
lean Republic. Requests instructions. 

Same subject. Approves and authorizes the course 

^ proposed m his Nov. 22. 

Same subject. Requests that the Navy Department 
take such action as necessary to put into effect the 
policy outlined in the papers submitted to and 
approved by the President, that is, proclauuition 
of military occupation and establishment of mar- 
tial law in the Dominican Republic. 

Same subject. Instructs him immeduitely to confer 
with Captain Knapp, commander of the American 
for(^ m Santo Domingo, and bo governed in his 
^tions by the proclamation to be made by Captain 
Knapp, declarmg military occupation and the 
establishment of martial law. 

Same subject Proclamation of military occupation 
and government just now made. 

Fmancial affairs. The General Receiver is directeii 
to place himself at the disposition of the military 
government; all funds heretofore paid to Doniini- 
can Government will be disbursed on order of 
nidjtary government. 

Suggests that no. recognition be 
given either the executive or legislative powers, 
which are generally believed abolished by the 
proclamation. Statement as to progress In de- 
layod payment under the budget. 

Same subject. The Dominican Government makes 
formal protest against the issuance of the proola- 
'Whereby Captain Knapp has been made 
Military Governor or 


236 

237 

253 


237 

253 


254 

254 


23S 

238 


239 

239 


239 


240 


242 

242 


243 


243 

256 


243 


244 





LIST OF PAPERS 


XXIX 


DOMINICAN REPXJBLIO-Oontinued 



1916 

101 Mr. Lansmg to Mr Hart- Jan 11 Guayaquil & Quito Ry. Co. Approves action re- 
man. poited in his No. 146 of Oct. 39, 1915. 

Mr HaitmnntoMr Lan- ...do Same subject. Rofeis to his Oct. 28, 1915, and reports 

sms (tdcRi am). failure of negotiations for private settlement 

161 Same to same do Same subject. Refers to his 153 of Dec. 6, 1915; in- 

closes copies of correspondence with Foreign Office 
showing the denial by Ecuador of the nsdit of the 
Umted States to intervene diplomatically on be- 
half of the railway company. 

Jan. 24 Treaty for the advancement of general peace, con- 
cluded between the Umted States and Ecuador. 
Text. 

Mr. Lansing to Mr. Hart- Apr. 6 Guayaquil & Quito Ry Co. Reports received that 
man (tcle^am) . Ecuador will probably apply for appointment of a 

receiver for the railroad. Instruction to mvestiga- 
gate. 

Mr. Hartman to Mr. Lan- Apr. 10 Same subject. Reply to the foregoing; the report 
sing (telegram). was apparently correct, but action is dependent on 

the attitude of the company toward resumption of 
negotiations for private settlement. 

Mr. Polk to Mr. Hartman July 12 Same subject. The Department and the railway 
(telegram) . company are disposed to await private settlement 

negotiations. 

Mr. Bolden to Mr. Lansing Aug. 1 Same subject. Refers to tbe foregoing. He is trying 
(telegram). to obtain definite Information regarding the pro- 

posed loan. 

Same to same (telegram)... Sept. 7 Same subject. A joint commission of Senators and 

Deputies has been appointed to investigate railroad 
matters. 

Mr. Lansing to Mr, Hart- Sept. 12 Protection of Chinese interests in Ecuador. It is re- 
man (telegram) . ported ttiat a new law is projected in the Ecuado- 

rean Congress placing an exorbitant tax on Clunese 
resident m Ecuador. Investigate and, if advisable, 
use good offices in behalf of Ohinese. 

Same to same (telegram)—. Sept. 26 Guayaquil & Quito Ry. Co. Instruction to say to 

Ecuador that this Government believes deposits of 
customs should be resumed at once. 

Mr. Hartman to Mr. Lan- Sept. 80 Same subject. Reports encouraging change of pe^ 

sing (telegram), sonnd. in Ecuadorean Government. 

Mr. Lansii^ to Mr, Hart- Oct. 28 Same subject. Refers to Department’s Sept. 26 and 

man (telegram). instructs to report. 

Mr. Hartman to Mr. Lan- Oot. 80 Same subject. Reply to the foregoing. Prospects of 

sing (telegram). more satisfactory relations. 

195 Same to same Nov. 7 Same subject. Refers to Department’s Sept. 26 and 

incloses his Foreign Office note No. 210 of Oot. 8 
and the reply thereto No. 48 of Nov. 4. 


260 

260 

260 

257 

264 

264 

264 

265 
265 
259 

265 

266 
266 
266 
206 






XXX 


LIST OF PAPEKS 



1853 Mr Sharp to Mr. Lansmg J 


1317 Mr. Lansing to Mr. Sharp 
(tdegrain) 

1224 Mr Sharp to Mr. Lansing 
(telegram). 


1406 Mr. Lansing to Mr Sharp 
(telegram) 


1302 Mr. Sharp to Mr. Lansing 
(telegram). 

1061 Mr. Lansing to Mr Sharp, 


8231 Mr- Bliss to Mr. Lansing— 

1576 Mr. Lansing to Mr. Sharp 
(telegram). 

1673 Same to same (tetoam),. 
1557 Mr. Bliss to Mr. Lansing 
(telegram) . 

1600 Same to same (telegram) . _ _ 
3724 Same to same 


3882 --.do-. 


Liability to French military service of naturalized 
American citizens of French origin and of Aincri- 
can-born children of French parentage. Rep(n’ts 
unsuccessful representations in behalf of Adiien 
J. Kirghis, who is about to bo called to the colois. 

Same subject. Make strong representations in 
behalf of Kirghis. 

Same subioct. Records of the Embassy tend to show 
that the French Government, even in time of 
peace, has required military service from those 
subject to it by French law notwithstanding 
naturalization. All requests based on circum- 
stances siimlar to those of the Kirghis case since 
the beginning of the war have been refused. 
Fuither action on behalf of Kirghis is believed to 
be fruitless. Requests instruction. 

Same subject. Instruction to extend good offices to 
Louis Levy, applying for removal of his name 
from French military rolls. Born in New York; 
French father. 

Same subject. The Foreign Office says that Louis 
Levy is French, being born abroad of French 
father, and is subject to military service. 

Same subject Instruction to request release of 
Armand Robert Garrot, born m Chicago 1804; 
father naturalized 1901 . 

Same subject. The Foreign Office declares Garrot 
to be French and can not be released. 

Same subject. Upon his mother's urgent request 
and statement that Armand Garrot has broken 
leg and tuberculosis, renew request for his release. 

Same subject. Instruction to report on Garrot caso. 

Same subject. The authorities are willing to have 
Carrot before a medical board for examination. 

Same subject. Reports progress of the Garrot case— 

Same subject. Reports release of Leon Korgor, as 
his case plainly fell under one of the categories of 
exemption from military service recognized by the 
authorities; I. e , he was bom in Paris, 1894, hut 
his father was naturalized as an American citizen 
in 1877, and Leon had, before leaving America for 
Europe, opted for American nationality, before 
the French Consul General. 

Same subject. Reports Garrot's discharge as *'R6- 
foimfi No. 2’\ 







LIST OF PAPEKS 


XXXI 


GKEAT BRITAIN 


No. 


From and to whom 


Date 


Subject 


Page 


18 


Mr. Bryan to Mr. Spring 
Rice. 


1913 

May 19 


Overflow of the waters of the Late of the Woods, 
The Department is advised that lands are being 
flooded on the American side of the Lake of the 
Woods, and that the water may be lowered if the 
Canadian authorities will remove the stop logs 
from the dam; asks that the matter be referred to 
the Canadian authorities. 


1914 

Mr. Spring Rice to Mr. Jan 23 
Bryan. 


40 


271 


Same to same 


Mr. Bryan to Mr Spring 
Rice. 

Same to same 


Feb. 6 

Feb 26 
Mar. 6 


British Embassy to the 
Department. 

Mr Bryan to Mr Garrison. 
Mr. Garrison to Mr. Bryan. 


Mar. 19 

Apr 13 
May 18 


Same subject. Advises of action taken by the 
Canadian authorities. Asks whether any repre- 
sentations have been made by the Department to 
the British Government on this subject. 

Application to Porto Rico of the Treaty of 1899 re 
the tenure and disposition of real and iiersonal 
property. Requests information. 

Lake of the Woods. Gives information requested 
in above note. 

Tenure of property in Porto Rico. The provisions 
of the Treaty of 1899 do not apply to Porto Rico. 

Same subject Requests suggestions from the 
Department how the provisions of the treaty may 
be made applicable to Porto Rico 

Same subject Transmits above correspondence 
and requests views 

Same subject Incloses a letter from the Governor 
of Porto Rico stating that no objection is seen m 
the extension of the provisions of the Treaty of 
1899 to Porto Rico, 


294 


205 

283 

284 

284 

285 


831 


890 


Mr. Spreiter to Mr Bryan 
(telegram) 


Mr. Lansing to Mr. Spring 
Rioe. 


Mr. Hammond to Mr. 
Lansing. 


Mr. Lansing to Mr Ham- 
mond. 

Mr* Wyvell to Mr. Lan- 
sing. 

Mr. Spring Rioe to Mr. 
Lansing. 

Mr. Lansing to Mr, Spring 
Rice. 


444 1 Mr. Spring Rioe to Mr, 
' Lansing. 


Mr. KLuttr to Mr. Lan- 
•Ing. 


Mr. Lansing to the Presi- 
dent, 


The President to the Sen- 
ate. 


1160 


Mr. Lansing to Mr. Spring 
Rjk}e 


1915 

July 6 


July 8 

July 10 

July 26 
Aug. 3 

Aug. 4 
Nov. 3 

Deo. 27 


1916 

Feb. 29 


Apr. 10 

Apr. 12 
May 8 


Lake of the Woods. Advises that the extreme high 
water m the Lake of the Woods, caused by the 
dam at Keoora, is causing great damage to lands 
in Minnesota. 

Same subject Transmits information contained in 
above telegram and asks that it be brought to the 
attention of the Canadian authorities that chey 
may toko such steps as may be necessary to main- 
tain the level of the lake at the normal elevation. 

Some subjoot. Requests that steps be taken to insure 
that a greater volume of water be allowed to pass 
over the dam at Kenora by removing the stop logs 
from the dam. 

Same subject. Above req^uest has been brought to 
the attention of the British Ambassador. 

Same subject. The International Jgint Commission 
wiU hold hearings from Sept. 7 to 15, 1915, to take 
testimony in the case of the Lake of the Woods. 

Same subject Rejports that proper measures have 
been taken to reduce the level of the lake. 

Same subject. The Department is advised that the 
logs which wore removed from the dam have been 
replaced. Requests that the matter be investi- 
gated and such measures taken as will insure the 
maintenance of a normal level of the lake. 

Same subject. The question of the overflow of the 
Lake of the Woods is now being investigated by 
tho International Joint Commission and it is 
hoped that, when the Commission renders its de- 
cision as to the level to be maintained, a joint in- 
ternational control win be arranged which will be 
satisfactory to all concerned. 


Same subject. Announces that the flnal argument 
of all interests involved in the case of the Lake of 
the Woods will be heard on Apr. 4 next at Wash- 
ington. 

Tenure of property in Porto Rico. Incloses corros- 
pondonce with the British Embassy and requests 
that same be submitted to the Senate for author- 
ity to make the provisions of the Treaty of 1899 
applicable to Porto Rioo. Incloses copy of the 
treaty. 

Same subject. Transmits a letter from the Secre- 
tary of State requesting that the Senate be ask^ 
to authorize the extension of the provisldns of the 
Treaty of 1899 to include Porto Rico. 

Lake of the Woods. The Congress has directed the 
War Department to make a survey of the Lake of 
the Woods. The surveying party desires to extend 
the survey into Oanadiw waters In or near Boflalo 
Bay. Requests that permission he obtained from 
the Canadian authorities. 


296 

296 


296 

297 
297 


299 

299 


300 

286 


287 






xxxn 


LIST OF PAPERS 


GREAT BRITAIN— Oontiiuied 


No. 

From and to whom 

Date 

Subject 


Same to same 

1916 
May 16 

Same subject. Quotes telegram received from the 
mayor of Warroad, Minn., stating that the water 
in the harbor is now at the highest level and re- 
questmg relief; asks that it be brought to the at- 
tention of the Canadian authorities. 

144 

Mr. Spring Rice to Mr. 
Lansmg. 

May 24 

Same subject. The Governor General reports that 
all logs have been removed from the dam at the 
outlet of the Lake of the Woods so that all the 
water the outlet is able to discharge is possmg 
through. 

147 

Same to same i — 

May 29 

Same subject. Incloses copies of reports made to the 
Canadian Deputy Minister of Public Works ex- 
plaining existing conditions m regard to height of 
the water in the Lake of the Woods. 

1199 

Mr. Polk to Mr. Spring 
Rice. 

May 31 

Same subject. Acknowledges receipt of No. 144 of 
May 24, 1916. 

164 

Mr. Spring Rice to Mr, 
Lansing 

June 7 

Same subject The Canadian authorities have no 
objection to the extension of the survey into Cana- 
dian waters of the Lake of the Woods. 

185 

Same to same 

June 27 

Same subject Further report about tlio removal of 
logs from the dam at the outlet of the lake 


Mr Lansing to Mr Spring 
Rice 

July 6 

Same subject. Acknowledges receipt of note of 
June 27, 1916, 


Senate resolution. 

Aug. 29 

Tenure of property in Porto Rico. Grants authority 
to apply the provisions of the Tieaty of 1899 to 
Porto Rico. 

4135 

Mr. Lansing to Mr. Laugh- 
bn. 

Aug. 31 

Same subject. Insti ucts to give formal notice to the 
Biitish Government that the provisions of the 
Treaty of 1899 are extended and applied to Porto 
Rico. 

Same subject. Informs him that the American 
Charge at London has been instructed to advise 
the British Government that the provisions of the 
Treaty of 1899 are extended and applied to Porto 
Rico. 

1306 

Mr. Lansing to Mr. Spring 
Rice. 

do 


Mr. Page to Mr. Lansing-- 

Oct. 23 

Same subject Indoscs copy of a note to the British 
Foreign Ofideo advising that Qovernmont of the 
extension and apphcation of the provisions of the 
Tieaty of 1899 to Porto Rico, and a note from the 


— — - 

Dec. 8 

Foreim Office acknowledging receipt. 

Treaty between the United States and Oioat Britain 
for the protection of migratory birds Text. 


Page 


301 


301 


304 

304 

306 

291 

202 


292 


203 


270 


GUATEMALA 


262 

Mr. Leavell to Mr Lan- 

1916 ! 

Mar. 14 ! 

Message of the President. Extracts.™— J 

308 


sing. 

Mr. Lansing to Mr 

June 1 

Agreement extending time for appointment of the 

307 


M5ndez. 

—do 

commission under Article 2 of t'ho Treaty of Sojit. 
20, 1913, effected by exchange of notes. J>uggi'sts 
extension to July l, 1916 

Same subject. Accepts the suggestion made in liia 

307 


Mr. M6ndez to Mr. Lansingj 


June 1. 



HAITI 


Mr. Lansing to Mr. Jusser- 

■ 1915 

Nov 16 

1 

French interests in Haiti. Reply to his Oct. 27, 1915: 

and. 

1010 
Jan. 6 

outiines the rules to be observed in Haiti in regard 
to Fiencb interests after exchange of ratifications 
of the Treaty of Sept. 16, 1916. 

Mr. Blanchard to Mr, 

Financial and economic affairs After conference 

Lansing (telegtam). 


with Ministers of Foreign Affairs and of Finance, 
desired reforms agreed to by Government ana 
instructions now being carried out by Admiral 
Oaperton. 

Same subject. In preparing a system for paying 
employees and creditors of Haiti, it is important 
to know whether there is to bo » continuation of 

Admiral Oaperton to Mr. 
Daniels (telegram). 

Jan. 7 

the system under the treaty after the necessary 
officials have been appointed. Recommends that 
treaty arrangmant inexode this method of disbarsr 



ment. 


m 


338 








LIST OF PAPERS 


xxxin 


HAITI— Continued 


From and to whom 

Date 

Ramfl tn sfimn 

1916 

Jan. 8 

Mr, Lansing to Mr. Blan- 
chard (telegram) . 

._,do 


Mr. Russell to Mr. Lansing 
(telegram). 

Jan. 10 

Mr. Lansing to Mr.Danicls. 

Jan. 11 

Mr. Davis to Mr. Lansing. - 

Jan. 12 

Mr Blanchard to Mr. Lan- 
smg (telegram). 

Jan 13 

Admiral Caperton to Mr 
Darnels. 

Jan, 14 

Same to same (telegram).-. 

Jan. 16 

Mr. Lansing to Mr. Blan- 
chard (telegram). 

Jan 18 

Mr. Blanchard to Mr. Lan- 
sing (telegrams) . 

Jan. 19 

Same to same (telegram) ... 

Jan. 20 

Same 

„.do 


...do....* 

, 

Mr. Lansing to Mr, Daniels. 

Jan. 26 

Admiral Caperton to Mr. 
Daniels (telegram). 

Feb. 2 

Rome to same , 

Fob. 8 



Subject 


Political affairs Disturbance in Port-au-Prince and 
South Haiti by members of black party in favor of 
ex-Sena tor Paulin for President N Orth Haiti not 
concerned in the affair Situation well in hand. 

Pmaneial and economic. Abolition of personal 
guard for the President held unconstitutional by 
Haiti To meet objection Department urges the 
adoption of followmg “The gendarmerie shall be 
the sole military and police force of the Republic of 
Haiti and the personal guard of the President shall 
be formed from membeis of the gendarmerie” 

Political affairs Foreign Office has advised me of 
armed manifestations against Americans in Haiti 
Several arrests of leaders 

Financial and economic affairs. Desires as compre- 
hensive and efficient method of disbursement as 
possible. Hopes authorized $100,000 per month 
sufficient for current expenditures. Thinks many 
expenditures contemplated m budgetary law ill- 
advised. Requests instructions to Admiral Caper- 
ton. 

Political affairs. R6sum6 of events attending the 
overthrow and murder of President Vilbrun 
Guilleau le Sam in 1916 

Financial and economic affairs. President deems 
sanction of the Council necessary for disbandment 
of palace guard and has left matter of settlement 
with negotiators at Washington. 

Same subject N o further funds to be turned over to 
the Government directly. Payment of salaries 
arc to be made to the individuals under the supej> 
vision of Admiral Caporton. Payment by check 
of a nonnegotiable nature after all lists have been 
verified. 

Same subject. Military maintaining control of ports 
and organizing gendarmerie. Naval officers in 
charge of Customs Service and fiscal matters. 

Same subject. Minister M6nos declines to sign agree- 
ment embodying the phraseclogy of the Depart- 
ment concerning gendarmerie. Bring matter to 
the attention of President and ask that instructions 
bo given to sign 

Same subioct Commission instructed to sign. 
Meanwhile former palace guard has been paid 
and replaced by gendarmerie. 

Same subject. T negation concurs with the President 
that the provisional appointment of Paymaster 
Conard as Receiver General, Captain Beach as 
Financial Adviser, and Lieutenant Oberlin as engi- 
neer would materially assist the Haitian Govern- 
ment. 

Same subject. XJ rges the D epartment to agree to the 
picking of the new guard from all the members of 
the gendarmerie and to the weanng of special in- 
signia. Also to the permanen t assignment to this 
duty. 

Same subject. The Haitian Govemmenthas decided 
to confine guard to an 6Ute corps drawn from the 
gendarmerie and of which the members will be 
acceptable to the President. Unless I hear to the 
contrary, I will, on Monday next, concur in deci- 
sion. 

Same subject. Acknowledges letter of Jan. 21, and 
commends Admiral Oaperton's efficient work in 
safeguarding the interests of all. 

Same subject. Doctor Audin appointed Mini^r 
of Public Instruction. Public W Orks transferred to 
Minister Borno. New method of paying em- 
ployees is being received with satisfaction. 

Political affairs. Everything quiet, Haitian Gov- 
ernment stated that hereafter all police and military 
functions will lie earned on by the gendarmerie. 
Oovernincnt desires to carryout all the wishes of 
the United States. 


Page 


310 


310 


339 


310 


340 


341 


342 


343 


343 


344 


34 


344 


846 


345 


320 


106413®--» E 1910 8 




xxxrv 


UST OF PAPERS 


HAITI—Oontmued 


No. 


From and to whom 


Date 


Subject 


Page 


ti> same 

i9ie 

Feb 8 

Mr. Daniels to Admiral 
Caperton (telegram). 

Feb. 11 

Admiral Caperton to Mr. 
Daniels (telegram). 

Feb. 12 

Mr. Lansing to Mr. Blan- 
chard (telegram). 

—do 

Mr. Blanchard to Mr. Lan- 
sing (telegram) . 

Feb. 16 

Mr. Lansing to Mr. Blan- 
chard (telegram). 

Feb. 18 

Admiral Caperton to 
Banque Natlonale 
d 'Haiti. 

Mr. MCnos to Mr. Lansing, 

Feb. 20 

Feb. 24 

Mr, Blanchard to Mr. Lan- 
sing (telegram) 

Feb. 26 

Mr. Lansing to Mr. Blan- 
chard (telegram). 

Feb 29 

Mr. Blanchard to Mr. Lan- 
sing (telegram). 

Mar. 3 

Mr. Lansing to Mr. Blan- 
chard (telegram) . 

Mar 8 

Admiral Caiierton to Mr. 
Daniels (telegram) 

Mar. 13 

Mr. M&ios to Mr. Lansing. 

Mar. 15 

Mr, Daniels to Admiral 
Caperton (telegram). 

Mar. 16 

Admiral Caperton to Mr. 
Daniels. 

Apr. 5 

Mr, Lansing to Mr. Mfinos . 

-.-do 


Financial and economic aJQfairs. Injunction brought 
on bank in many caaes attaching salaries. If at- 
tachments be allowed, system of discounting 
salaries will contmue to llounsh Judges say that 
unless they are allowed U mted States will bo shown 
to have little regard for the Haitian law and cus- 
toms. I recommend that I be mstructed to in- 
form the Government that attachments will not 
be regarded 

Same subject Situation as outlined not thoroughly 
understood Why will permitting attachments to 
stand encourage salary discounting? Would the 
investigation of cause of suit involve .such difficul- 
ties that all must be recognized or all disrogardcd*-* 

Same subject. Necessary to issue military order 
declaring invalid sequestration of one-third of em- 
ployee's salary, if buyingpresentand future salaries 
at heavy discount is to be discontinued Present 
method of paying will not prevent this practice 

Same subject Department sees no objection to 
permitting attachment of salaries by court injunc- 
tion for legitimate debts only. But steps should be 
taken, preferably by Haitian Government, to make 
attachment by “opposition " impossibleunder Jaw 
or military order suggested by Admiral Caperton 
should bo resorted to 

Same subject Impossible to repeal by executive 
decree Hai tian law permitting attachment of onc- 
third salary of public employees Necessary to 
resort to military order if the desired results are to 
be obtained. 

Same subject The Admiral should disregard any 
form of attachment of salaries which interfere 
with the purpose of this Government Ho may 
recognize attachment by court injunction, pro- 
vided it is based upon action for legitimate debts 
only. 

Same subject. Orders Bank of Haiti to disregard all 
injunctions on salaries, except where such injunc- 
tions do not result from the discounting of salaries. 

Same subject. Asks that Compagnie Haitienno do 
Construction be given the means of carrying on the 
repairing of streets and wharves of Port-au- Prince. 

Same subject Mandates are still issued by the Gov- 
ernment for payments The Administrator of Cus- 
toms inquires into the facts and makes r>ayment 
when considered proper to the individual to whom 
the amount is duo. 

Same subject. Requests recommendation as to the 


advisability of making payments to the Compagnie 
Haitienno do Construction as desired by Haitian 
Government. 

Same subject. Recommends that additional $5,000 
be allowed the Compagnie Haitionne de Construc- 
tion. 

Same subject. Admiral may increase payments to 
Compagnie Haitienno de Construction, provided 
company expends this money m actual work. 

Same subject, Gives statement of revenues. Rec- 
ommends tuat all valid claims against Haiti b<» .set- 
tled and that short-term loan of $500,000 be ex- 
gended by American occupancy in settling Haitian 

Treaty with Haiti. Ho is ready to exchange ratifi- 
cations, and incloses an interpretative commentary 
for consideration in connection with the treaty. 

Financial and economic allairs. Authorizes the ap- 
plication of $500,000 of surplus revenue of Haiti to 
purposes lawfully pledged by the Government of 
Haiti prior to July 27, 1915. 

P^iticaf affairs. Senate dissolved. Chaml>or of 
Deputies will revise the Constitution so tut to con- 
form with treaty. A Council of State will draw 
up and prepare such changes and laws as may be 
necessary to be submitted to the assembly. 

Treaty. As the interpretative commentary sub- 
mitted m his Mar. 16 was not before the Senate at 
the time of its ratification of the treaty, It is impos- 
sible to consider the views expressed therein, and 
this Government must insist on an interpretation 
in accordance with the English teact, as azr^ unon 
In X9I5 by exchange of notes. 


345 


346 


346 


347 


347 

348 


349 

349 


360 

360 

360 

361 


322 

361 

320 

326 







LIST OF PAPEBS 


xxxv 


HAITI— Continued 


From and to whom 


Mr M6nos to Mr Lansing. 


Mr. Lansing to Mr M6nos. 


Mr, Blanchard to Mr.Lan- 
sing (telegram). 


Mr. Jusserand to Mr. Lan- 
sing, 

Mr Lansing to Mr. Blan- 
chard (telegram). 


Mr. Lansing to Mr. Jnsse- 
rand. 


Mr.Blanchard to Mr. I/an- 
siiig (telegram). 

Mr. Farnham to Mr Stab- 
ler. 


Mr. Blanchard to Mr. Lan- 
sing. 


Same to same (telegram)—. 


Same to same. 


Mr. M$nos to Mr. Lansing, 


Mr Lansing to Mr. Scholle 
(telegram). 


Mr. Wright to Mr. MSnos, -| 


Mr. Blanchard to Mr. 
Lansing (telegram). 

Mr. Lansing to Mr. Blan- 
chard (telegram). 

Mr. Mtoosto Mr. Lansing. 


Mr. Adee to Mr, Blan- 
chard. 


Date 


Subject 


Page 


1916 

Apr. 27 
May 1 

May 2 
May 3 

May 8 
May 11 

— -do 

May 15 
May 24 

May 31 

June 1 
June 6 
June 12 

June 15 

— do— 

June 17 
June 28 
June 26 

June 


Same subject. Beply to the Department's Apr. 6; 
expresses the hope that this Government will accept 
the interpretative commentary in so far as it does 
not conflict with the terms of the treaty. 

Same subject. Accepts his note of Apr, 27 as an 
agreement on the part of Haiti that the English 
text of the treaty shall take precedence in interpret- 
ing the treaty, and sets May 3 as the date for ratifi- 
cation. 

Financial and economic affairs. Transmits memo- 
randum of the Haitian Government relative to the 
recall of the Haitian Commission at Washington. 

Treaty between the United States and Haiti con- 
cerning the finances, economic development and 
tranquillity of Haiti, concluded Sept. 16, 1915. 
Procfiamation and text. 

Railroad controversy. French Government asks the 
payment at the earliest possible date of the French 
bondholders of the Railroad Company of Haiti. 

Financial and economic affairs Commission 
charged by National Bank on 60,000,000 franc loan 
only point on which commissioners and bankers 
can not agree. Commissioners should be m- 
structed to agree with bankers and immediately 
dose entire question. 

Railroad controversy. The Government of the 
United States has tendered its good ofl&ces in the 
hope that an early and satisfactory settlement may 
be had of the difficulties existing between the Na- 
tiond Railroad of Haiti and the Haitian Govern- 
ment. 

Financial and economic affairs. Commission in- 
structed to agree with bankers. 

Railroad controversy Incloses copies of a memo- 
randum deahng with claims of the Compagnie 
Nationale des Ohemins de Fer d 'Haiti against the 
Haitian Government. 

Political affairs. Caco chiefs with other prisoners 
carrying arms and ammunition escaped from 

{ jrison. Firing m the city with the loss of several 
ives. Colonel Waller confident of controlling the 
situation. 

Same subject . Everythmg quiet here. Steps being 
taken for the apprehension of escaped Caco chiefs 
and other prisoners. 

Same subject. Codio and Motellus, Caco chiefs, to- 
gether with nme others, were surrounded and on 
attempting to escape were shot. 

Financial and economic affairs. Commission in- 
structed to^return to I^t^ . 

d'Haiti and otSw^uestions to%^ent Miufster!**^ 
Same subject. American naval and marine ofQeers 
are authorized to serve with Haitian constabulary. 
Bequest that Minister be Immediately instructed 
to conclude bank and railroad negotiations. 
Dopartmont will recommend a naval officer for 
Engineer of Public Works. . 

Railroad controversy. Transmits a copy of a memo- 
randum prepared by the National Railroad of 
Haiti regardii^ differences between that com- 
pany and the CJovemment of Haiti. 

Financial and economic affairs. Full powers as 
riven the commission have been forwarded to the 
Minister. 

Same subject. A. J. Maumus and W. S. Mathews 
nominated as Receiver General and Deputy Re- 
ceiver of Customs of Haiti. 

Same subject. Haitian Government is pleased 
that Receiver General and Deputy Receiver have 
been designated. Claims that It was constrained 
to suspend its reforms because the American capi- 
tal for industrial and agricultural works on which 
it relied was not forthcoming. 

Treaty. Incloses copies of the agreements of even 
date between Haiti and the United States estab- 
lishing the compensation of the Financial Adviser, 
Receiver, General and Deputy Iteoeiver General of 
Customs, and of the engliieersi provided for in the 
treaty of Sept. 16,1915. 


327 


353 


321 


321 

321 


354 


374 


354 

354 

355 

322 




XXXVI 


LIST OF PAPERS 


HAITI— Oontmued 


5. From and to whom 

Date 

Mr. M6110S to Mr. Lansing , 

1916 

June 28 

Mr Lansing to Mr Blan- 
chard (telegram). 

Mr. MCnos to Mr. Lansing . 

July 5 

July 7 

Mr. Polk to Mr. Blanchard, 
(telegram) 

Mr. Lansing to Mr. Mfinos . 

July 8 

July 10 

Mr. Polk to Mr, Blanchard 
(telegram). 

July 11 

Mr. Blanchard to Mr. 
Lansing (telegram). 

July 12 

Mr, Lansing to Mr. Blan- 
chard. 

do 

Mr Jussorand to Mr Polk. 

July 28 

Mr. Lansing to Mr. Schollc. 

Aug 10 

Mr, Lansing to Mr. Jus- 
serand. 

Aug, 11 

Mr. Polk to Mr, Scholle 

Aug. 12 

Aug 24 

...do.. i 


Mr. Lansing to the Presi- 
dent. 

Aug, 26 i 

Mr. Lansing to Mr, Scholle 
(telegram). 

Aug. 31 

Mr. Scholle to Mr. Lansing 
(telegram). 

Sept. 4 ] 

Mr. Mftnos to Mr. Stabler. 

Sept. 6 1 

Mr, Famhamto Mr. St«.h* 
ler. 

Sept. 8 e 

1 Mr. Lansing to Mr. MOnos 

Sept. 13 a 


Subject 


Page 


72 


1739 

78 


Financial and economic affairs. President of Haiti 
agrees to appointment of A . J. Maumus as Receiver 
General and W S. Mathews as Deputy Reccivo* 
General of the Customs. 

Same subject. Piesident has nominated Lieut. 

Edgar Garfield Oberlin as one of the engineers 
Same subject Informs that the President of Haiti 
has approved the nomination of Lieut Edgar 
Garfield Oberlin. 

Same subiect. President has nominated Mr. Addi- 
son T. Euan as Financi^ Adviser, 

Same subject. Acknowleagos receipt of a copy of 
the agreement reached between Haitian Commis- 
sion and the Haitian Bank. In case the residue 
of the 5 per cent of the receipts from the customs 
duties should be insufficient to defray the commis- 
sion of the bank, this Government will endeavor 
to reach with the Haitian Government a satisfac- 
tory agreement. 

Railroad controversy. Although the Nation^d Rail- 
road has submitted its argument sometime ago, 
Minister states he awaits detailed instructions. 
Please endeavor to expedite. 

Same subject. Mini'^ter for Foreign Affairs states 
information, not instruction.'?, with reference to 
National Railroad fwked for by Minustor M^nos 
is being prepared and will be sent as .soon as pos- 
sible 

Financial and economic affairs. Incloses copy of 
above note to the Minister of Haiti and copy of 
the a^cement hotween the Haitian commissioners 
and the representatives of the National Bank of 
Haiti. 

French interests in Haiti. Reply to Department's 
Nov, 16, 1915. The treaty having been ratified, 
he proposes putting on record the understanding 
stated m that letter. 

Financial and economic affairs. Indosos copy of 
note from the Mim’.ster of Haiti and calls attention 
to that portion which refers to alleged delays in 
the establishment of reforms. Discusses reasons 
for delay and instructs to bring matter to the 
attention of President and to express the hope 
that unnecessary delay may not attend the oon- 
conduct of consequent negotiations. 

French interests in Haiti. Reply to his July 28; 
sets forth this Government's understanding of the 
points referred to In his Nov. 10, 1915, 

Same subject. Incloses copies of the Department's 
notes of Nov. 10, 1916, and Aug. 11, 1016, to the 
French Ambassador. 

Protocol carrying out the provisions of 
Article X of the Treaty of Sopt. 10, 1915, with ref- 
erences to the formation of a gendarmorie and its 
command. 

Same subject. Agreement carrying out the pro- 
visions of Article XIII of the Treaty of Sept. 16, 
1015, with reference to the control of telegraphs and 
telephones in Haiti. 

Same subject. Advises the President of the con- 
clusion of the protocol and the agreement of Ang. 
24, 1916. 

Railroad contro^rsy. Requests that Government 
of Haiti instruct Minister Mfinos to present im- 
mediately Haitian Government's statement in 
regard to railroad. 

P'lnancial and economic affairs. Does the Depart- 
ment wish tOI Federal civil administrations now 
conducted by order of the President turned over 
to the Haitira Government beginning October 1? 
Elailroad controverey. Haitian Government de- 
cided m 1915 to postpone foreclosure proceedings 
to give wmpaiiy time to present a basis of agree- 
ment. Pawrs ^m his Government do not 
enlighten hipi; wishes to know if such basis of 
agreement was presented 

Statenwnt as to reasons why tlie 
W(^K on the railroad could not be prosecuted 


faster ^d why it was stopped entlrel 
..... ^ of National 


»uDjeOT. wepjy or wationai Rallroetd Co. to 
the mqu€fflt of Minister M^noefor information con 
ceming the foreclosure proceedings. 


356 

356 

356 

357 
357 


375 


375 


3,58 


386 


359 


387 

388 
33*1 

337 

337 

375 

360 

375 

376 
378 




Prom and to whom 

Date 

Mr. Menos to Mr. Stabler.. 

1916 

Sept 21 

Mr Mayer to Mr. Lansing- 

1 

Sept 22 

Mr Lansing to Mr Mayer 
(telegram). 

Sept 27 

Mr. Wright to Mr Fam- 
ham 

Sept 28 

Mr Mayor to Mr. Lansing 
(telegram) 

Sept 29 

Mr. Lansing to Mr. Mayer 
(telegram). 

Sept. 30 

Mr MfinostoMr Lansing. 

Oct 6 

Mr Blanchard to Mr Lan- 
sing 

Oct 18 

Mr Jusserand to Mr. Lan- ' 
sing 

Mr Stabler to Mr Lansing. 

Oct. 27 

Nov, 2 

Mr. Lansing to Mr. Davis 
(telegram). 

.-.do 

Mr. Davis to Mr. Lansmg 
(telegram). 

Nov. 3 

Mr. Blanchard to Mr. Lan- 
smg (telegram). 

Nov, 4 

Mr. Mfinos to Mr. Lansing. 

Nov 16 

Mr, Lansing to Mr. Blan- 
chard (telegram). 

Dec. 11 

Mr. Farnham to Mr. Lan- 
sing. 

Dec. 14 

Mr. Lansing to Mr. M^nos. 

—do 


22 Mr. Lansing to Mr. M6nos„L..do.... 


Same subject. Transmits two copies of reply of the 
Haitian Government to the memorandum of the 
National Railroad Co. 

Financial and economic afteirs . Recommends that 
Department instruct him to convey to Haitian 
Government the views of the Department regard- 
mg concessions. 

Same subject. Until civil administration is satis- 
factorily and permanently installed and constabu- 
lary equipped for efficient service, such institutions 
as are still inefficient should remam under the con- 
trol of occupation. 

Railroad controversy. Transmits reply of Haitian 
Government to the memorandum of the National 
Railioad Oo Extends Department's good offices 
for any oral discussion of the points at issue. 

Financial and economic affairs. Has informed the 
Haitian Government that the Department wishes 
the situation relative to public works to remain in 
statu quo. 

Same subject. Inform Haitian Government that it 
IS important that all matters relative to concessions 
be subnoitted to Financial Adviser for his lecom- 
mendations 

Same subject Haitian Government thinks that 
even as provided by the convention the appoint- 
ment as well as the choice of the Haitian custom 
employees is exclusively within the province of the 
President of Haiti. 

Same subject. ludososcopy of his note to the Foreign 
Office on grantingof concessions and reply of the 
Foreign Office. Haitian Government will appre- 
ciate the recommendations of the Fmancial Adviser. 

French interests in Haiti Requests exchange of 
notes. 

Financial and economic affairs Conference be- 
tween Mr. Polk and Mimster Mfenos. Discusses 
the interpretation of the words “collect, receive 
and apply" m Artide II of the Haitian-Amencan 
treaty 

Same subject. Haitian Minister of Foreign Affairs 
claims that you agreed to two divisions of customs 
service, one under Receiver General and the other 
an assessment office under Haitians No record of 
such an agreement can be found 

Same subject. Denies he entered into agreement, 
either oral or written, with respect to the inter- 
pretation of Article II or any other article of 
Haitian treaty. 

Same subject. Expression that supervision of sani- 
tation and public works rests with Oberlin has not 
cleared the situation thereto. Government de- 
mands the turnover to it of all work under the 
occupation. 

Same subject. Calls attention that a number of 
public works and departments are still in the 
hands of the American forces m Haiti and asks that 
Article XIII be fully enforced 

Same subject. President has nominated Civil Engi- 
neer Ernest R. Gaylcr, U. 8. Navj^ to be engineer; 
Burg. Norman T. McLean, U. S. Navy, to be 
engineer m charge of sanitation. 

XtoUroad controversy. Requests the good offices of 
the Department to the end of arranging for an arbi- 
tration of the questions which the railroad com- 
pany has vaizuy endeavored to adjust with the 
Minister of Haiti. 

Financial and economic affairs. President nomi- 
nates Civil Engineer Ernest R. Gayler, XT. 8. 
Navy, as engineer officer to the Government of 
Haiti. 

Treaty. Protocol perfecting the French text of the 
Protocol of Aug. 24, 1016, relating to the Haitian 
gondaxmeile. 

Financial and economic affairs. States that the 
Government of Haiti was in error ^n thinking that 
all public works were to be turned over to It at a 
statodtime. Gives reasons why certain works and 
departments could not be turned over to that 
Government 





xxxvm 


LIST OF PAPERS 


HONDURAS 


No. 


Prom and to whom 


Date 


Subject 


Page 


235 

68 

103 

318 

344 

346 

113 


119 

123 


Mr. Ewing to Mr. Lansing. 
Mr. Boyle to Mr. Lansing, 


Mr. Lansing to Mr. Spencer 
Mr. Spencer to Mr Lansing 


Mr. Spencer to Mr Lan- 
sing 

Same to same 


Mr. Lansing to Mr. Spen- 
cer. 


Mr Spencer to Mr. Lan- 


1916 

Jan. 4 
May 12 


June 17 

July 14 
July 28 
Aug. 31 
Sept 6 
Sept 23 

Oct 24 


Mr. Lansing to Mr. Spen- Nov. 22 
cer. 

Mr. Lansmg to Mr. Ewing. Dec. 13 


Message of the President. Extiacts 

Arrest of J. W Grace, an American citizen, result- 
ing from a law of Honduras regarding destruction 
of property by fire. Quotes the terms of the law 
and calls attention to its dangerous features, re- 
quests instructions. 

Same subject. Refers to Mr. Boyle’s No. 68 of May 
12 and instructs him to report any attempted appli- 
cation of the law m question 

Same subject. The Dejiartment’s No. 103 of Juno 12 
will bo eomphed with. 

Treaty for the advancement of general peace, signed 
at Washington, Nov. 3, 1913. Proclamation. 

Airest of Grace. Reports ariest of J. W Grace, an 
American citizen, at Tela, on a charge of arson. 

Same subject. Grace has been released and the con- 
duct of the Tela comandante is being investigated. 

Same subject. Instructs him that if the investiga- 
tion show the facts to be as stated in his 34<l, ho wdl 
request the Government to bring the guilty party 
to justice. 

Same subject. Incloses copy of his representations 
to the Foieign Office Reports an interview with 
the President, who promised the removal of the 
Tela comandante. 

Same subject. Approves the action reported in lus 
368 of Oct. 24. 

Same subject. Incloses copy of a disp.itch from the 
American Consul at Ceiba reporting that the Tela 
comandante has been removed. 


391 


394 

389 

394 

395 
395 

390 

307 

397 


ITALY 


707 

Mr. L»ansmg to Mr. Pen- 

1916 

Jan 8 

266 

field. 

Mr. Lansing to Mr. Page,. 

Jan. 12 

539 

Mr. Page to Mr. Lansing 

Jan. 19 

276 

(tdegram), 

Mr. Lansing to Mr. Page,. 

Jan. 26 

460 

Mr. Page to Mr. Lansing 

Feb 3 

481 

(telegram) 

Mr Lansing to Mr. Page 

Feb. 17 

567 

(telegram). 

Mr. Page to Mr. Lansing 

Feb. 18 

482 

(telegram). 

Mr. Lansing to Mr. Page 


1129 

(telegram). 

Mr. Lansing to Mr Pen- 

,,,do 

1172 

field (telegram), 

Mr. Penfi^ to Mr. Lan- 

Mar 3 

461 

sing (telegram). 

Mr. Page to Mr. Lansing, - 

Mar. 4 

1185 

Mr. Penfield to Mr. Lan- 

Mar, 14 

1404 

sing (telegram). 

Same to same 

Mar. 16 

1167 

Mr. Lansmg to Mr. Pen- 

Mar. 21 

300 

field- (telegram). 

Mr. I/ansing to Mr. Page,. 

Mar. 23 

1205 

Mr. Penfield to Mr. Lan- 

Mar. 27 

1179 

sing (telegram). 

Mr, Lansing to Mr. Pen- 

Mar. 31 

518 

field (telegram) 

Mr. Lansing to Mr. Page . 

—do 

316 

(tdegram). 

Mr. Lansing to Mr. Jay 

Apr. 10 


Liabihty to military service. Instruction to request 
release of Frank Ghiloni. 

Same subject. Instruction to request release of 
Angelo Mazzoi. 

Same subject. Reports refusal of authorities to re- 
lease Enrico Ajollo. 

Same subject. Instruction to request release of 
John Zuffi. 

Same subject. Reports refusal of the authorities to 
release Giacomo Mazza. 

Same subject. Instruction to present again the case 
of Enrico Ajello. 

Same subject. Reports authorities have definitely 
ruled agdnst leleaso of Ajollo. 

Same subject. Further instructions for reopening 
the Ajello c^o. 

Same subject. Further instructions for the Ghiloni 
case 

Same subject. Reports progress of Ghiloni case 

Same subject. Reports status of the Ajollo case: 
interview with the Foreign Minister about pro- 
posed naturalization treaty; detention of wivos 
and children of naturalized citizen.^ with a view to 
compelling their husbands and fathers to return 
to Italy foi military service. 

I^eports request for guaranties In 

Ghiloni case. 

Same subject and purport 

Same subject. Inquires nature of guaranties desired 
in Ghiloni case. 

Same subject. As the Italian law provides that an 
It^lan citizen bom and residing in foreign parts, 
who considers himself Italian, retains his Italian 
citizenship but may abandon it when he liecomes 
of age, ask the Government what evidence of 
abandonment of Italian nationality will be satis- 
factory. 

Same subject. Conditions imposed by Austrian 
Government for release of Ghiloni* 

Same subject. Instruction as to ooniditions on which 
to ask release of Ghiloni. ' 

sanie subject. Instruction concerning report on 
I Aj<‘IIO, 

Sanio subject. Instruction to request the release of 
‘ Donato De Fato, 


398 

399 

399 

400 

400 

401 
401 

401 
'*402 

402 
402 


404 


404 

405 


405 


406 

406 

407 
407 


UST OF PAPEES 


rXYTX 


ITALY — Continued 


No 

From and to whom 

Date 



1916 

324 

Same to same _ 

Apr. 18 

532 

Same to same (telegram),— 

Apr. 21 

1204 

Mr Lansing to Mr Pen- 
field (telegram) . 

Apr. 25 

333 

’ Mr. Lansmg to Mr. Jay 

May 1 

633 

Mr. Jay to Mr. Lansmg 
(telegram). 

May 4 

1248 

Mr. Penfleld to Mr Lan- 
smg (telegram). 

May 6 

634 

Mr. Jay to Mr Lansmg 
(telegram) . 

May 6 

1215 

Mr. Lansmg to Mr. Pen- 
field (telegram) . 

May 8 

494 

Mr. Jay to Mr. Lansing 

May 9 

548 

Mr. Lansmg to Mr. Jay 

May 12 

1599 

Mr. Penfleld to Mr. Lan- 
smg. 

May 15 

496 

Mr. Jay to Mr. Lansmg 

May 17 

339 

Mr. Polk to Mr. Jay 

May 19 

554 

Same to same (telegram)... 

May 22 

639 

Mr Jay to Mr Lansing 
(telegram). 

May 23 

501 

Same to same 

May 26 

504 

do 

May 30 

June 19 

1308 

Mr. Penfleld to Mr. Lan- 
smg (telegram) 

359 

Mr. Lansmg to Mr Jay 

June 30 

663 

Mr. Page to Mr. Lansing... 

July 6 

664 

Same to same (telegram) 
Mr. AdeetoMr. Hitchcock. 

-.do...- 
July 12 

532 

Mr. Jay to Mr. Lansmg 

July 14 

534 

Same to same........ 

July 17 

870 

Mr. Polk to Mr. Page 

July 26 

1366 

Mr. Penfleld to Mr, Lan- 

Aug. 2 

3267 

sing (telegram), 

Mr. Polk to Mr. Gerard 
(telegram). 

Aug. 7 

4296 

Mr. Gerard to Mr. Lansing 
(telegram). 

Sept. 2 

298 

Mr. Lansing to Mr. Stovall 
(telegram). 

Mr. Lansing to Mr. Hitch- 
cock. 

Sept. 6 

Sept. 8 

566 

Mr. Page to Mr. Lansing- . 

Oct. 14 

1501 

1 

Mr. Penfleld to Mr. Lan- 
sizig (telegram). 

Oct. 27 


Subject 


Page 


Same subject. Instraction to request the release of 
Joseph Orocchi 

Same subject Instruction to report on Mazzei case,. 
Same subject. Instruction to report on Qhiloni case. 


408 


408 

408 


S^e subject. Reply to his 461 of Mar. 4, with full 
instructions on the several matters there brought 
up 

Same subject. Requests instructions in regard to 
detention of wives and children of American citi- 
zens of Italian origm. 

Same subject Reports conditions imposed by Aus- 
tria for release of Qhiloni. 

Same subject. Refers to Mr. Page's 633 of May 4. 
Reports progress. 

Same subject. Reply to his 1248 of May 5. Ghiloni 
had better return by Scandinavian route. 

Same subject Reports action in pursuance of De- 
partment's instruction No. 309 of Mar. 23, incloses 
Poieign Office note 

Same subject Further instructions in regard to de- 
tention of wives and children 

Same subject. Reports conditions upon which the 
Austrian Government will release Ghiloni. 

Same subject Reports his action in pursuance of 
instructions of May 12, No 548. 

Same subject. Instruction to request the release of 
Bartolomeo Licciardo. 

Same subject. Instructs to urge early decision m the 
Zufficase. 

Same subject Reports Government’s decision to 
cease lostnctlng the movements of wives and chil- 
dren of American citizens. Reports disinclination 
of the Government to discuss a naturalization 
treaty during the war. 

Same subject . D iseusses at length the general ques- 
tion of detention m Italy for military service of 
Italian-born citizens of the Umted States, deten- 
tion of wives and children, and negotiation of a 
naturalization treaty. 

Same subject. Reports reaffirmation of refusal to 
release Ajello and Ghiloni and other cases of the 
same nature. 

Same subject. Frank Ghiloni released, to return to 
America via Scandinavia. 

Same subiect. Reply to his 601 of May‘26; instruc- 
tion to keep the Foreign Office alive to the deep in- 
terest of this Government in having justice done 
to the wives and children of citizens of the Umted 
States, and to bear constantly in mind the need 
for a naturalization convention. 

Samosubjcct . Refers to Department’s 532 of Apr. 21; 
authorities refuse to release Mazzei; reasons. 

Same subject. Zuffi released 

Same subject. Informs him of the decision of the 
Italian authorities not to release Mazzei; remarks. 

Same subject. Refers to Department’s 316 of Apr. 
10; reports refusal of the authorities to release De 
Pato. 

Same subject. Refers to Department's 339 of May 
19; reports refusal of the authorities to release 
Licciardo 

Same subject. Instruction to request the release of 
Hostdio Gioml. 

Same subject German authorities refuse to vi86 
Qhiloni's passport. Requests instructions. 

Same subject. Instruction to request Foreign Office 
to grant Ghiloni’s return to America. 

Same subject. Gorman authorities suggest request- 
ing Austrian authorities to permit return of Ghiloni 
via Switzerland. 

Same subject. Instruction in Ghiloni case.. 


409 

411 

402 

412 

412 

413 

414 

414 

415 

416 

417 
417 


417 


419 

420 
420 


421 


421 

421 


422 


423 


422 

424 

425 

424 

425 


Same subject. States fully, in replying as to the 
Mazzei case, the iwsition of this Government in 
regard to the whole contention with Italy concern- 
ing the detention of Americap citizens. Also as to 
negotiation of a natuiahz&tion treaty. 

Same subject. Reports refusal of the authorities to 
release HostUlo Giomi. 

Same subject. Reports progress of the Ohiloni case. 


425 


427 

437 





LIST OF PAPERS 


XL 


ITALY—Continued 


No. 

From and to whom 

Date 



1916 

733 

Mr Page to Mr. Lansing 
(telegram) 

Nov. 17 

1559 

Mr Pcnfield to Mr. Lan- 
sing (telegram). 

Deo. 2 

1871 

Mr. Lansmg to Mr. Sharp 
(telegram). 

Deo. 8 

1765 

Mr Sharp to Mr. Lansmg 
(telegram). 

Dec 28 


Subject 


Same subject. Refers to Department's 324 of Apr. 1 8. 
Reports refusal of the authorities to rejeaso Oropchi. 

Same subject The Austrian Government has con- 
sented to the repatriation of Frank Ghiloni via 
Switzerland and France. 

Same subject. Request French authorities to per- 
mit return of Ghiloni via Franco 

Same subject. Reply to Department’s 1871 of Dec. 8. 
The Ghiloni matter has been referred to the com- 
petent authorities, who will hasten their n‘ply as 
much os possible. 


Pape 


427 
423 

428 
428 


JAPAN 


236 

Mr. Lansing to Mr. Guthrie 

1916 

Jan. 25 

457 

Mr. Guthrie to Mr Lansmg 

Mar. 3 


Same to same (telegram)-.. 

Apr. 7 

790 

Mr. Lansing to Mr. Francis 
(telegram). 

Apr. 18 

290 

Mr. Lansing to Mr. Guthrie 

Apr 20 

518 

Mr. Dearing to Mr. Lan- 
sing (telegram). 

Apr. 24 

549 

Mr Guthrie to Mr. Lansing 

June 20 


Same to same (telegram).— 

June 30 

642 

Mr. Francis to Mr. Lan- 
sing (telegram). 

Mr Guthrie to Mr. Lan- 
sing (telegram). 

July 7 

...do 




Mr, Polk to Mr Guthrie 
(telegram). 

July 8 

132 

Mr. Heintzleman to Mr. 
Lansmg 

July 11 


Mr Polk to Mr. Guthrie 
(telegram). 

July 13 

653 

Mr. Francis to Mr. Lan- 
sing (telegram). 

July 14 


Mr Guthrie to Mr. Lan- 
sing (telegram). 

July 16 


Mr. Reinsch to Mr. Lan- 
sing (telegram). 

July 17 

562 

Mr. Guthrie to Mr. Lan- 
sing, 

.—do 


Discrimination in freight rates affecting equality of 
commercial opportunity in China; protest of the 
United States; reply to his No. 378 of Nov. 4, 1915; 
instruction to renew representations 

Same subject. Incloses copy of his note to the For- 
eign Office m pursuance of Department’s 236 of 
Jan. 25. Requests further instructions. 

Treaty betwe.en Japan and Russia guaranteeing the 
tei ritorial rights and special interests of each in the 
Far East. Reports that the press is publishing 
the terms as agreed upon. Gives synopsis of 
reported treaty. 

Same subject. Instructs to ascertain facts of reported 
alliance between Japan and Russia and to report 
terms of convention. 

Discrimination in freight rates. Reply to his 457 of 
Mar, 3 Instructions. 

Treaty between Japan and Russia The M inistor 
for Foreign Affairs admits that an agreement with 
Japan is contemplated, but has not been reduced 
to terms. It will not disadvantageously effect the 
interests of third parties 

Same subject. Gives newspaper comments on the 
proposed treaty. 

Same subject. The treaty was approved by the 
Privy Council yesterday. 

Same subject Quotes terms as publi.siip(l in the 


446 


448 

420 


430 

449 

430 


431 

431 

431 


press 

Same subject. Quotes statement issued by the 
Foreign Office giving the terms of the convention 
signed July 3, 1916 

Same subject. Department awaits detailed mail 
report showing embassy’s interpretation of the 
treaty. 

Same subject. Quotes newspaper account of I ho 
treaty and its supplementary clauses, and com- 
ments on the economical aspect of the treaty. 

Same subject. Asks whether Embassy beli(‘ve» that 
there are other matters embraced In the treaty in 
addition to the two articles quoted in his telegram 
of the 7th instant, and whether the full text will ho 
published 

Same subject. Minister for Foreign Affairs Sarunoff 
asserted in an interview that the United States has 
no occasion for fear or suspicion and that America 
will be a beneffeiary from the treaty. 

Same subject. The additional provisions agreed 
upon but not yet publLShed were read to the British 
Ambassador. They relate to the transfer of a part 
of the Chinese Etistern Railway to Japan, ffshlng 
rights on the coast of Manchuria and navigation m 
the Sungari River. The British Ambassador is 
satisfied that British trading rights aro not af- 
fected. 

Same subject. The consensus of opinion here te that 
the treaty will be used by Japan to Impress upon 
Great Britain that Japan is not dependent upon 
her, and that the European Powers will not oppose 
Japan's policy In Chino. 

Same subject. Forwards full text of the treaty as 
publish^ in the Official Gazette. Quotes news- 
paper comments on the supplementary agree- 
ments. 


432 

432 

432 

435 


436 


436 


437 


487 





LIST OF PAPEES 



563 Same to same 

Mr. Polk to Mr. Remsch 
(tdegram). 


Mr. Lansing to Mr. Guth- 
rie (telegram). 


954 Mr. Lansing to Mr, Fran- 
cis (telegram). 


Mr. Guthrie to Mr. Lan- 
sing (telegrams). 


Same to same. 


721 Mr. Francis to Mr. Lan- 
sing (telegram) 


Mr. Guthrie to Mr. Lan- 
sing (telegrams). 


Same to same. 


613 do 


Same subject Comments on the treaty 

Same subject. Depai tment is awaitmg more definite 
information before giving an opinion whether 
favored-nation dause can be invoked if deemed 
necessary 

Same subject Quotes note to be delivered to the 
Japanese Foreign Office, Stating that this Govern- 
ment is convinced that neither of the contracting 
parties desire to withdraw from the Root-Takahhra 
agreement of 1908, and that the Department would 
appieciate if the Japanese Government would fur- 
nish a copy of the supplementary articles. 

Same subject This Government understands that 
the Russian Government has not withdrawn from 
the Treaty of July 30, 1907, concerning the mde- 
pendenco and territorial mtegrity of China, and 
would be pleased to receive a confirmation of this 
understanding from the Russian Government 

Same subject. It Is reported that the new conven- 
tion provides that Japanese troops will replace 
Russian troops m Manchuria at the close of the 
present war. 

Same subject. The Mmister for Foreign Affairs 
states that Japan has no intention to deviate from 
the Root-Takahira notes or the prior convention 
with Russia in relation to Chma The transfer of 
a portion of the Chinese Eastern Railway has not 
been completed. It is the understanding of the 
Japanese Government that China’s grant of the 
right of navigation automatically ensues to the 
benefit of all other nations which have most- 
fa vored-nation treaties with China. 

Same subject. The Mimster foi Foieign Affairs has 
given assurances that the Russian Government 
will maintain unimpaired the provisions of the 
Ticaty of 1907 though no mention thereof is made 
in the convention of 1916. 

Some subject. The British Ambassador at Tokyo 
states that the treaty moots with the approval of 
the London authorities 

Same subject The Poi eign Office has given written 
assurances on the line of his telegram of Ang. 21, 
1916 

Snmo subject Incloses copies of note and memo- 
landumfrom the Japanese Foreign Office on which 
telegram of even date was based. 


3 Mr. Curtis to Mr Lansmg.j 


Same to same (telegram). .. 


Mr. lyflnsiiig to Mr Curtis 
(telegrnm), 

Mr. Daniels to Mr Lan- 
sing. 


Mr. Curtis to Mr. L/ansing 
(telognim). 


Mr. Lntismg to Mr. Daniels 
Mr. Daniels to Mr Lan- 
sing. 


Mr, Curtis to Mr. Lansing 
(telegram). 

Mr. Lansing to Mr. Curtis 
(telegram). 


1016 

Jan. 12 Political affairs The Liberian Government desires 452 

that the Chester bo left m Liberian waters until 
answer has been received to its request for the loan 
of arms from the United States. 

Feb. 4 Same subject. The Liberian Government has de- 453 

cided to purchase the arms from the War Depart- 
ment at the stated price. 

Feb. 7 Same subject. The arms will be shipped on the 453 

collier Sterling, carrying supplies to the Cheater. 

Can the Chester be relieved upon arrival of arms? 

Fob. 9 Same subject. The Navy Department is obliged to 454 

recall the Chester immediately after the arrival of 
the shipment of arms to tho Liberian Government 
at Monrovia. 

Feb. 12 Same subject. Tho Liberian Government desires 454 
that the Chester remain until revolt is crushed. 
Recommends that the vessel remain two weeks 
after arrival of arms. 

Fob. 14 Same .subject Advises of the above request 454 

Ffb 17 Same subject. The commanding officer of the Ches- 465 

ter has been directed to proceed to New York no 
later than two weeks after receipt of the shipment 
of arms by the Liberian Govommont, 

Mur, 17 Same subject. Shipment of arms arrived and was 455 

delivered to the Secretary of War. 

June 5 Financial affairs. It Is reported that the Liberian 458 

Government will discontinue to pay interest on 
1612 loan. Report facts. 






xm 


LIST OP PAPERS 


LIB E R1 A— Continued 


No. 


From and to whom 


26 


Mr. Curtis to Mr. Lansmg 
(telegi'am). 

Same to same 


27 


--ao 


Mr. Lansing to Mr. Curtis_ 


129S 


Mr. Lansing to Mr. Spiing 
Bice 


a 


Mr. Curtis to Mr Lansing. 
Same to same (telegram) — 


348 


Mr Spnng Rice to Mr. 
Lansing. 


Date 


Subject 


lOlfi 

June 9 


June 13 


L.do...J 


Aug. 24 


Aug. 26 


Sept. 30 
Nov. 7 


Dec. 1 


Same subject. On account of the war the revenues 
of the Liberian Government are greatly dimis- 
ished Will report in detail by dispatch 
Political alhms Reports an engagement between 
the Liberian frontier force and the lebellious 
Kjus, the Kius were defeated and routed. 
Financial aHairs. The Iwiberian Government, on 
May 27, 1916, gave notice to the National City 
Bank of New York, fiscal agents, of its inability to 
contmne payments on interest and sinking fund of 
the 1912 loan. Incloses detailed statement fiom 
the Liberian Treasury Depaitment 
Political aifairs. The Department is gratified to 
hear of the crushing of the Kiu revolt by the Libe- 
rian frontier force. 

Same subject. It is repoited that the British ship 
Prdhsu landed arms and ammunition for the use 
of rebellious native tribes in Liberia. Requests 
that the mattoi be investigated. 

Message of the President. Transmits copy of 

Fmanciai affairs. Arrival of an expected cargo 
steamer will provide snfRdont funds to pay June 
interest on 1912 loan and leave a balance for the 
July interest. Reports tentative agreement with 
the Bank of British West Africa for a loan of $9,000 
monthly to the Libeuan Government. 

Political affairs. The matter of the landing of arms 
by the Biitish shij) Prahsii, was investigated and 
It was learned that no cargo was consigned to Libe- 
rian polls, nor vvas any cargo landed. 


458 
456 

459 


450 

467 

461 

461 


467 


MEXICO 


196 


198 


Mr. Bryan to Mr. Sillin an 
(telegram) 

1914 

July 24 

1915 

Jan. 12 

Dec. 18 

Mr. Bryan to Mr. Caroth- 
ers (telegram). 

Mr. Lansing to Mr, Silli- 
man (telegram). 

Mr Parker to Mr Lansing 
(telegiam). 

Dec. 21 

Mr SiUiman to Mr. Lan- 
sing (telegrams). 

--do- — 

Same to same 

Dec. 22 

Mr. Lansing to Mr. Parker 
(telegram). 

Dec. 24 

Mr. Lansing to Mr. Silll- 
man (telegram). 

...do.— 

Mr. Silliman to Mr. Lan- 
sing (telegram). 

Dec. 27 

Mr. Lansing to Mr. Parker 
(telegrams). 

Dec. 28 

Same to same (telegram)-.. 

Dea 29 

Mr. Lansing to Mr. SiBi- 
man (t^egrai^. j 

—do 


Pohtical affairs. Instructs him remain with Car- 
ranza until further notice 


Same subject. Travel with Villa until we can find 
someone to take your place. 

Financial affairs. ^ Impress upon Carranza that to 
compel the National Bank of Mexico to pay its 
bills of exchange in gold, while it has been obliged 
to accept current paper money, will prove ruinous 
to Mexico. 

Same subject. Carranza is reported to have author- 
ized the courts to accept jadicial demands gainst 
banks of issue to force them to make Immediate 
redemption of then bank notes in specie. Most 
energetic representations should be made. 

Same subject. Iteply to Department's Doc. 18, 
6 p. m. , Like all other banks, National Bank of 
Mexico m being required to redeem its notes in 
Mencan silver, not in gold, in accordance with 
the law 

Same subject Unable to obtain any further ex* 
pression on the bank situation from Oarramca 
other than that conveyed in telegram of Dec, 21» 
6 p. m. 

Same subject. Instructs Parker to repeat his 192. 
Dee. 21, 6 n. m., relative bank situation to Silll- 
man, Saltillo 

Same subject. Upon receiving instructions from 
u^e upon Carranza the necessity for 
allo'Prtng the banks sufficient time to meet the 
requirements of banking order. 

Same subj^t. Suggests that a commission repre- 
senting the banking interests meet with Carrsmsia 
and state the case fully. 

subject Inform the Minister of Finance that 
this Government views with grave concern the 
reported plans of the de fado Government to take 
drasUc action against the banking institutions of 
Mexico. 


466 

479 


627 


629 


630 

6S0 





lAST OF PAPERS 


XLin 


M E XI 0 O— Oontinued 


From and to whom 

Date 

Mr. Lansing to Mr. Parker 
(telegram). 

Ml. Lansing to Mr. SiUi- 
man (telegiam). 

1915 

Dec 30 

Dec. 31 

Mr. Silhman to Mr Lan- 
sing (telegram). 

1916 

Jan. 1 

Mr Lansing to Mr Ed- 
wards (telegram). 

Jan. 3 

Mr. Silliman to Mr. Lan- 
sing (telegram). 

Jan. 4 

Same to same (telegram)-.. 

Jan. 5 

Senate resolntioTi _ 

Jan 6 

Compafiia Petrolera Mari- 
time to Mr Lansing. 

] 

Jau 7 

Mr. Cobb to Mr. Lansing 
(telegrams). 

Jan. 11 

Same to same 

„.do 

Mr. Lansing to Mr. Cobb 
(telegram). 

...do 

Mr. Cobb to Mr. Lansing 
(telegrams). 

Same to same 

Jan. 12 

__,do - 

Same to same. __ 

...do 

- --do - - , , 

do..— .. 

Mr. Lansing to Mr. Silh- 
man (telegrams). 

— do 

Same to same- - _ 

..„do 

Mr. Lansing to Mr. Arre- 
dondo. 

Mr. Arredondo to Mr. 
Lansing. 

—.do 

.—do 

Mr. Lansing to Mr. Ed- 
wards (telegram), 

Mr. Cobb to Mr. Lansing 
(telegrams). 

Same to same _ _ - - , 

--do 

Jan. 13 

....do 

- -do, , , 

— .do— 

Mr. Lansing to Mr. Sllll- 
man (tdegram). 

—do - 

Mr. Cobb to Mr. Lansing 
(telegram). , 

Jan. 14 

Mr. Lansfrig to Mr. Ed- 
wards (telegram)* 



Subject 


Page 


Same subject Advise American citizens not to 631 
comply with decree relating to paper money. 

Same subject. Request Cananza to suspend en- 631 
forcement of decree of Dec 6 until the rights of 
Americans can be brought to attention of de facto 
Government for consideration. 


Same subject A decree is now being prepared, 
which it is expected Carranza will shortly sign, 
permitting banks of issue period of two years in 
which to redeem their bills in silver 

Protection of Americans and Amencan interests. 
Request Obregon to send troops to pumsh looters 
of properly of Cusi Mimng Co 

Pinanci al affairs Reply to Department's 31,4 p.m. 
Decrees relating to issuing of paper money no 
longer in effect Regrets any loss in consequence 
of them, but Government not prepared at this 
time to suggest a mode of relief. 

Protection of Amcncan mining interests. Chief 
Executive is disposed to reconsider and reform 
present mining decree 

Political affairs. Requests information concerning 
the political affairs in Mexico. 

Protection of Amencan oil interests Protest of 
Compafiia Petrolera Maritima against the at- 
tempted cancellation by the Mexican Govern- 
ment of a certain contract or lease held and owned 
by said company 

Protection of Americans and American interests. 
Reports murder of a number of employees of the 
Cusi Mining Go. 

Same subject. Murder of the employees of Cusi 
Mining Co. confirmed 

Same subject. Seek cooperation of authorities in 
recovering the bodies of Amencans recently shot 
by bandits 

Same subject Department's Jan 11, midnight. 
Mexican authorities cooperating 

Same subject. Mexican authorities at Jaurez im- 
pressed by gravity of situation and show a present 
eagern(»s to act 

Same subject. Details of Santa Ysabel massacre 
as given by the only American survivor. 

Same subject. More details of the Santa Ysabel 
massaoie. 

Same subject. Railway communication between 
Durango and Torreon intormpted. Requests 
Carranza to order adequate forces to vicimty of 
Durango, Torreon and Gomez Palacio in order to 
prevent a repetition of outrages. 

Same subject. Urge Carranza to order the immedi- 
ate pursuit and punishment of the perpetrators of 


Same subject. Incloses copies of certain telegrams to 
Mr. SilUman in regard to murder of 16 Americans. 

Same subject. Acknowledges Department's note of 
Jon. 12. Deplores the murder of Americans near 
Cibihuabua City and promises efheient action will 
be taken to bring murderers to justice. 

Same subject. Bequest protection of Madera Lum- 
ber Co. mills in and about Madera. 

Same subject. Train with bodies reached El Paso 
without mishap; guarded by Mexican soldiers. 

Same subject. Certain mining oompames are tele- 
graphing their employees to leave and axe seeking 
protection for them. Recommend that Depart- 
ment cs^ upon the de facto authorities to afford 
protection en route. 

Same subject. 'Troops to be hastened to Madera 
and adequate guard promised for train from Chi- 
huahua to El Paso. . . 

Same subject. Acquaint Carranza with the intense 
excitement throughout the country caused by 
the Sants Ysabd massacre. Prompt and efficient 
action ^one will allay such feeling. , . 

Same subject. Reports departure of train bringing 
employees Am^oan Smelting Refining Co, 

anci others from Chihuahifra. 

SeriousaitaatlonpieyailsatMadera. 
Request adequate force be sent to that place for 
prote^iOB Of foreigners against bandits. 


631 

660 

632 


70S 


741 


m 

651 

661 

661 

662 

662 

662 

653 

663 

654 

664 

664 

666 

666 


666 


656 


xuv 


LIST OP PAPEKS 


M E XI C 0 — Oontintied 


No. 


From and to whom 

Date 

Mr. Lansing to Mr. Cobb 

1916 

Jan. 14 

(telegram). 


Mr Silliman to Mr Lan- 

— ,do 

sing (telegram). 


Mr. Cobb to Mr. Lansing, 

...do 

Mr. Parker to Mr. Lansing 

_-,do 

(telegram). 


Mr. Cobb to Mr. Lansing, 

Jan 16 

Compafiia Petrolera Mari- 

—do 

tima to Mr. Lansing. 


1 

Mr Williams to Mr. Lan- 

-.do 

sing (telegram) . 


Mr. Hanna to Mr. Lansing 

Jan. 16 

(telegram). 


Mr. Silhman to Mr. Lan- 

—do 

smg (telegram). 


Admiral Winslow to Mr, 

Jan, 17 

Daniels (telegram) 

Mr. Edwards to Mr. Lan- 

—do 

sing (telegram). 

Mr. Lansing to Mr, 

--do 

Daniels. 


Mr. Lansing to Mr. Baker. 

...do 

Same to same 

Jan 18 

Mr. Lansing to Mr. Wilson. 

—do 

Consul Silliman to Mr. 

Jan. 19 

Lansing (telegram). 

Mr. Lansmg to Mr. Sim- 

— do— 

pich (telegram). 

Mr. Lansing to Mr, Baker. 

,,-do 

Mr. Lansing to Mr. Silh- , 

—do — 

man (telegram). 

Hdx, Lansing to Mr. Parker 

Jan. 20 

(telegrams). 

Same to same (telegram) 

—do 


Subject 


Same subject. Ascertain whether Watson and com* 
panions requested military guard for their trip. 
Had Watson and companions received from M^- 
can authonties assurances that it would be safe to 
resume operations at Cusihuiriachic. 

Same subject. Reports the capture and shooting of 
two Villista generals. Reword is offered for the 
apprehension of perpetrators of Santa Ysabel 
outrage 

Same subject Repoits the arrival of tram bring- 
ing 52 Americans out of Mexico. 

Financial ullaiis Minister of Finance wishes Do- 

S aitment to point out concrete cases of proposed 
rastic measures in order to give proper answer 
to Department's 198. 

Protection of Americans and American interests. 
Reply to Department’s Jan. 14, 6 p. m. Gives facts 
which doubtless led Watson to believe that it was 
safe to resume operation of mine and to travel on 
the Northwestern Railroad 
Piotoction of American oil interests. Asks that 
Mexican Government be requcstetl not to disturb 
property of company until oppoiiumty has been 
given for defense and its rights determined. 
Seizure and confiscation of American properties 
forced loans Expropriation of all cotton stored 
at Ton eon regardless of ownership. 

Protection of Americans and American interests. 
Reports the arrival of Americans from hloxico. 
Doing everything possible to gel Americans out 
from dangerous localities. 

Same suWeet. Reply to Department’s Jan. 13, 5 
p. m. Orders issued by Carranm for the imme- 
diate pursuit, capture and punishment of those 
responsible for the crime. 

Same subject. Reports from the Yaqm Valley.. ... 

Sjviw subject. First passenger train in 10 days ar- 
rived from Casas Grondes bringing about 25 Amer- 
icans. Conditions reported unalarming. Some 
expect to return. 

Pohtieal affairs. Requests pertinent facts concern- 
ing the occupation of Vera Cruz by our nav^ forces. 
Same subject. Requests statement embodying 
orders given for the protection of American life ana 
property on Mexican border and facts concerning 
the occupation of Vera Cruz. 

Protection of Americans and American Interests. 
D6 facto Government requests that the militawf 
and immigration authorities cooperate with the 
Mexican authorities by denying the outlaws refuge 
in the United States. 

Same subject. The de facto Government of Mexico 
requests that the military and immigration author^ 
ities cooperate with the Mexican authorities in 
their efforts to exterminate bands of outlaws by 
denying them refuge in the United States. 

Political affairs. Villa and other raiders declared 
outlaws. 

Same subject. Bequests number of Americans and 
Mexicans and others killed on American soil since 
beginning of uprising against Porfirio l^fas. if pos- 
alble Same to Juarez, Pledras Negras, Laredo 
and Matamoros. 

Same subject. Asks that every effort bo made to 
exclude from the United States any persons against i 
whom there may be ground for suspicion of nar-» 
ticipation in the outrage at Sants Ysabel . ! 

Protection of American oil interests. Department 
informed de facto authorities contemplate issuing 
a decree providing for the nationalization of petro- 
leum. Point out to Carranza the dangerouasitna’* 
tion which might arise from the is^nce of a oon- 
nsoatory decree. 

Protection of Americana and American Interests. 
Hopes that the campaign against Yaqui Indians be 
vigorously prosecuted. 

Fiuanci^ affairs, Siliiman instructed to repeat to 
you his telegram of Jan. 1. In view said telegram, 
fiirther representations unneoossary at thiswme. 


Page 


666 

657 

657 

m 

657 

762 

776 

659 


660 

OCO 

464 
466 

661 

661 

465 

466 

466 

753 

m 

m 







IjIST or PAPERS 


XliV 


MEXICO—Contmued 


From and to whom 

Date 

Same to same......,* 

1016 

Jan. 20 

Mr. Baker to Mr Lansing. 

Jan. 21 

Mi. Riafio to Mr. Lansing. 

...do 

Mr. Lansing to Mr. Sim- 

...do 

pich (telegram). 


Mr. SiUiman to Mr. Lan- 

...do 

sing (telegram) 


Mr. Lansing to Mr. Silh- 
man (telegram). ! 

...do. - 


Mr. Lansing to Mr. Parker. 

Jan. 22 

Mr Cochran to Mr. Lan- 

__.do 

sing (telegram). 


Mr. Lansing to Mr- Silli- 

...do — 

man (telegram). 


Mr, Edwards to Mr. Lan- 

Jan. 23 

sing (telegram). 


Mr Post to Mr. Lansing 

Jan. 24 

Mr. Hostetter to Mr. Lan- 

—do 

sing (telegram). 


Mr. Bevan to Mr. Lansing 

Jan. 26 

(teleCTam). 

Mr. Silliman to Mr. I<an- 

—do 

sing (telegram). 


Mr. Lansing to Mr. Ed- 

— do 

wards (telegram). 


Mr. Baker to Mr. Lansing. 

...do..... 

Mr. Silliman to Mr. Lan- 

Jan. 26 

^g (telegram). 


Some to same (telegram). 

— do 

Mr. Bevan to Mr. Lansing. 

—do 

Mr. Parker to Mr. I^ansing- 

...do. 

Mr. Edwards to Mr, Lan- 

Jan. 27 

sing (telegram). 


Mr. SiBlman to Mr. Lan- 

— do 

sing (tdegram). 



Subject 


Page 


Same subject. Report available facts as to the 
amount of money of the invalidated issues referred 
to in your No. 198, which remains in the hands of 
Americans. 

Political affairs. Gives instructions sent in accord- 
ance with request of Jan. 19. 

Seizure and confiscation of American properties. 
Requests that Amencan representative be in- 
structed to assist Spanish Ohargfi in his efforts to 
have decree affecting cotton growers repealed 

Embargo on the exportation of arms and munitions 
into Mexico Advise Department from time to 
time whether pemission for shipments of muni- 
tions of war for industrial pm poses to pomts in 
your district should be withheld 

Protection of Amencan oil interests Department's 
Jan p. m Informed by Secretary in charge 
of the Department that the Government does not 
contemplate such a decree 

Same subject Request Carranza to take appropri- 
ate steps suspend the decree of forfeiture against 
the Compania Petrolera Marituna and to protect 
property of company against seizure and inter- 
ference. 

Protection of Americans and American mterests. 
Request adequate protection for settlers of Los 
Mochis distnct. 

Embargo against the expoitation of arms and mu- 
nitions mto Mexico. Munitions should not, in 
the opinion of Consul Simpich, be pernutted to 
cp to Ures, Alamos, nor to any point south of 
Giiaymas 

Protection of American oil interests , Y our Jan . 131 , 
6 pm. Department wishes you to take up matter 
with Carranza m person. Ascertain if contract 
mentioned directly or indirectly affects the oil 
nghts of American citizens. 

Embargo against the exportation of arms and mu- 
nitions into Mexico Munitions of war should not 
bo permitted into this district. Conditions bor- 
dering on anarchy obtain. 

Politico affairs. States that request of Jan. 19 will 
bo complied with. 

Embargo against the exportation of arms and muni- 
tions to Mexico. Acknowledges Department’s 
Jan 21, 6 p m 

Protection of American oil interests. Main points 
of new oil decree issued by General Aguilar J an 16. 

Same subject. Department’s Jan. 21, 6 p. m Gov- 
ernment of Mexico surprised that the American 
Government should make the representation when 
only the interests of Mexican citizens appear 
affected. 

Protection of Americans and American interests. 
Investigate and report whether there is any foundar 
tiou for the statement that Carranza is not domg 
anything to apprehend and punish those guilty of 
the massacre of Americans. 

Same subject. Incloses a report on the border con- 
ditions for the week Jan. 16, 1916. 

Protection of American oil interests. IJepartment’s 
Jan. 22. General Cananza informed mo person- 
ally that pipe line in question would not directly 
or indirectly affect the oil rights of American eiti- 


631 


776 


787 


763 


753 


662 

788 


764 


788 


467 

788 

764 

764 


662 


766 


zens. 

Same subject. Department's Jan. 19, 4 p. m., and 
Department’s Jan. 22. Carranza informed me that 
the Government was not contemplating the issu- 
ance of decree nationalizing petroleum industry. 

Same subject. Transmits a copy of new oil decree 
issued by General Aguilar on Jan. 16, 1910. 

Protection of American mining interests. Trans- 
mits translation of a droular, which has force of 
law, concerning the payment of mimng taxes. 

Protection of Americans and American interests. 
There is some foundation for the charge made that 
little is being done to apprehend the guilty parties 
connected with the Santa Ysabel massacre. 

PrOtoc^on of American oil interests. Quotes a tde- 

riirther Information concerning the proposed o3 
^pipe line in the Tuxpam district. 


765 


766 

708 

663 


76 $ 


XLYL 


LIST OF TAPERS 


MEXICO— Continued 


No. 

From and to whom ! 

Date 


Mr Williams to Mr. Lan- 
sing (telegram) 

Mr. Post to Mr Lansing,. 

1910 

Jan. 27 

Jan. 29 


Mr Sawday to Mr Lan- 
sing (telegram). 

Jan. 30 


Mr. Lansing to Mr, Silh- 
man (telegrams). 

Jan. 31 


Mr. Lansing to Mr. Riafio- 

Feb. 1 


Mr. Lansing to Mr. Silli- 
man (telegiam). 

do 


Mr. SiUiman to Mr. Lan- 
sing. 

Feb. 2 


Mr. Lansing to Mr. Silli- 
man (telegram). 

Feb. 5 


Same t,n sflTTie . ^ ^ _ 

...do 


Mr. Letcher to Mr. Lan- 
sing. 

Mr. Silliman to Mr. Lan- 
sing (telegram). 

Feb. 9 

Feb. 10 


Mr. Lansing to Mr. Silli- 
man. 

Feb. 11 


Same to same (telegram) ... 

Feb. 16 


Presadent Wilson to the 
Senate. 

Feb. 17 


Mr. Lansing to Mr. Hos- 
tetter. 

Fob 18 


Same to same 

Feb. 19 

...do-.-._ 

805 

Mr. Hostetter to Mr. Lan- 

sing. 



Same to same (telegram) 

Feb. 21 


Mr, Lansing to Mr. SUli- 
man (telegram). 

,,.do 




Same to same 

..^do 


Mr. Lansing to Mr. Hos- 
tetter (telegram). 

Feb. 24 


Mr. Silliman to Mr. Lan- 
sing (telegram). 

...do. 


Subject 


Seizure and confiscation of American properties 
Expiopriation foreign-owned cotton stopped. 

Politico! affairs Supervising inspector, Immigra- 
tion Service, El Paso, instructed to prevent entry 
mto the United States of any outlaws. 

Embargo against the exportation of arms and muni- 
tions into Mexico. Department’s Jan. 21, 0 p, m., 
should be confined to immediate requirements of 
known mining operations and public works. 

Protection of Americans and American interests. 
Ascertain 3 ust what is being done to capture and 
punish murderers 

Seizure and confiscation of American pioperties. 
Department informed that expropriation has been 
stopped 

Protection of American oil interests. Quotes tolo- 
gram of Jan 25, 3 p. m , from Vice Consul Bevan 
Ask Garrama whether decree issued by his au- 
thority Right of protest reserved. Can not re- 
gard as binding, so far as American citizens are 
concerned, provisions against seeking protection 
of governments of interested nationals. 

Same subject. Department’s telegram of Feb. 1, 
4 pm. 'lYansmits a copy of the representation 
made by him in the case. 

Same subject Department’s recent telegram con- 
cerning oil decree at Veia Cruz. Decroo said to 
operate m favor of Mexican Commission. Renew 
previous representations and request immediate 
answer 

Protection of Americans and American interests. 
Request authorities to momtaiu adequate garrison 
permanently at Los Mochis. 

Political affairs. Information on the political situa- 
tion m the consular district of Chihuahua. 

Protection of American mimng interests. Financial 
status of Government necessitates drastic tax 
measures. Change in mining decree to bo consid- 
ered next period. Taxes foi next tweio will have 
to be paid according to terms of the present decree. 

Same subject Request an extension of time to pay 
arrears in taxes. One month is entirely too short 
to enable mine owners generally to liquidate their 
arrears of taxes. 

Political affairs. Instructs Consul to ask authorities 
for additional troops at Cusihuiriachic for the pro- 
tection of mining property 

The President’s message to the Senate transmitting 
a report of the Secretary of State on the Mexican 
situation. 

Protection of Americans and American interests. 
Can anything be done, through friendly Indians or 
otherwise, to obtain rwcaso of Mrs. John luciir and 
children, still held prisoners by Yaquis? 

Same subject. Telegraph status of campaim 
against Yaqm Indians and whether settlors In 
Yaqm Valloy are now adequately protcctcil. 

Same subject. Acknowledges Department’s tele- 
gram of Feb. 18. States efforts made to have 
Yaquis release family of Lehr. 

Same subject. Qenei^ Serrano claims campaign 
against Y aquis is being vigorously pushed. Valley 
said to be safe. 

Protection of American mining interests. AH state- 
ments of de facto Government concerning mining 
decrees are unsatisfactory and unresponsive to 
Department’s representations. This Government 
looks for the annulment or modification of the de- 
crees so as to make them ccmformable to the Mexi- 
can Constitution. 

Same subject. Protests the imposition of arbitrory 
and excessive taxes. Asks the annulment of the 
decree of Mar. 1, 1916. 

Protection of Americans and American Interests. 
Call Obregon's attention to the lack of sufficient 
troops in Chihuahua district. 

Protection of American mining interests. Annul- 
ment or modification of mining decree can not be 
had now. Mexican Government considers the 
Department’s interpretation of the Mexican Con- 
stitution as untenable. Payments miule for min- 
ing taxes due and receipts riven therefor must be i 
taken as complete liquidation. 


777 

467 

788 

663 
777 

758 

759 
759 

664 

468 
709 

709 

469 
469 
064 

064 

664 

666 

710 

710 

666 

713 



LIST OF PAPERS 


XLVII 


MEXIOO—Continued 



Date 

Mr. Lansing to Mr. SiUi- 
man (telegram). 

1910 
Feb. 26 

Mr. Lansing to Mr. Rodg- 
ers. 

Feb. 28 

Mr Letcher to Mr. Lan- 
sing (telegiam). 

...do 

Mr. Hostetter to Mr. Lan- 
sing (telegram). 

Mar. 1 

Mr Cobb to Mr. Lansing 
(telegram). 

Mar. 3 

Mr Lansing to Mr. SiUi- 
man (telegram). 

—do 

Same to same (telegram) ... 

.„.do 

Mr. Lansing to the Com- 
pafiia Petrolera Mari- 
time 

Mar. 4 

Mr. Silliman to Mr. Lan- 
sing (telegram). 

—do 

Same to same (tdegram)... 

Mar. 5 

Mr. Cobb to Mr. Lansing 
(telegrams). 

Same to same 

Mar, 6 

Mar 7 

do 

Mar, 8 



„,do 

Mr. Carothers to Mr, Irfin- 
sing (telegram). 

Mr. Lansing to Mr. Koo... 

...do 

—do 

Compaftia Petrolcra Mari- 
tima to Mr. Lansing. 

—do 

Mr. Cobb to Mr. Lansing 
(telegram). 

Mr. Carothers to Mr. Lan- 
sing (telegram). 

Mr. i^etcher to Mr* lAn- 
sing (telegram). 

Mar. 9 

— do--. 

—do.... 

Mr. Cobb to Mr. Lansing 
(telegram). 

General Pershing to Gen- 
eral Funston (telegram). 

— do 

— do,,.. 

Mr. loosing to Messrs. 
Silliman and Bdt (t& 
gram). 

...do 

Mr. Letcher to Mr. Lan- 
sing (telegram). 

...do.— 


Subject 


Page 


Same subject. Expresses disappointment of this 
Government at Carranza’s attitude toward its 
representations in a matter so vitally affecting a 
vast amount of American property. Reaffirms the 
tenor of its telegrams of June 30, Dec. 28 last, and 
the 21st instant. 

Political affairs. Instructs him to proceed to Mexico 
as Special Representative of the Department of 
State. 

Protection of Chinese interests. Carranza troops 
under General Gutierrez at Jimenez, en route to 
Chihuahua, attacked hotel of Charley Chee, 
a Chinaman, andiobhed guests. Chee was exe- 
cuted the following mormng. 

Protection of Americans and American interests. 
Obregon says that additional troops have been 
sent to Chihuahua district. 

Political affairs. Reports movements of Villa. Be- 
lieves he intends to cross mto the Umted States and 
proceed to W ashington. Requests instructions 

Protection of Americans and Amencan interests. 
Request that permanent and adequate guard be 
stationed at Los Mochis. 

Protection of Chinese interests. Quotes telegram 
from Consul Letcher, dated Peb 28, 1 p. m., and 
instructs to request appropriate authorities to take 
steps to pumsh those guilty of outrages mentioned. 

Protection of American oil interests. Acknowledges 
company’s letter of Jan. 7. States result of action 
taken by the Department. Suggests company 
furnish it with a statement of the interests held by 
American citizens. 

Protection of American mining interests. Delivered 
Dopjirtment’s mail instructions of Feb. 21, also 
Department’s Feb. 24, 4p. m. 

Political affairs. Department's Feb. 16, 6 p. m. 
Foreign Secretary says that sufficient troops have 
been sent to guard Ousihuiriachic region. 

Same subject. Villa reported to be proceeding to 
border. 

Same subject. Further movements of Villa— - 

Same subject. Villa forces not being pursued be- 
cause of insufficient troops undei Juarez command 
and failure of detachments from Chihuahua 

San e subject. Carranza Consul has called on Car- 
nnza for troops. Inefficient action by Carranza 
forces will tend to undermine the df facto Govem- 


713 


478 

796 


665 

478 


795 

760 


718 

478 


479 


479 

479 


479 


n.cnt. 


Same subject. Reports movements of Villa. 


480 


Protection of Chinese interests. Informs the 
Chinese minister of the execution of Charley Chee, 
a ('ihmoso subject. States that relatives request 
that Minister send a representative to investigate 
and to protect rights of the heirs to property. 

Protection of American oil interests. Gives state- 
ment of the beneficial interests in the Compaiiia 
Petrolcra Maritima which are vested in American 
citizens, and of the proportion which such interests 
boar to those in the property of nationals of Mexico. 

Political affairs Reports attack on Columbus, N. 
Mex., by Villa troops. 

Same subject. American garrison at Columbus 
attaoked by Villa forces. 

Same subject. General Gutierrez has requested 
that the Government of the United States be 
informed that orders have been given for the cap- 
ture of the bandits, 

Same subject. States that Villa was with attacking 
party. 

Same subject. Villa himself led charge through 
camp, losses given. TVoops in pursuit. Re- 
commends cavalry be sent if any number of troops 
are to be sent after Villa. 

Same subject. Instructs to bring information con- 
cerning the attack on Columbus to the attention 
of Carranza. Expects de facto Government to do 
everything in its power to exterminate this lawless 
element. 

Same subject. He has been informed that MexiOain 
cave^y has been sent in pursuit of Villa. 


796 


760 


480 


481 

481 


481 


482 






xLvm 


LIST OF PAPERS 


M E XICO— Continued 


No. 


From and to whom 


Date 


Subject 



1916 

Mr. Edwards to Mr. Lan- 

Mar. 9 

sing (telegram). 


Mr. Cobb to Mr. Lansing 
(telegram).’ 

—do 

Same to same. Telegram— 

Mar 10 

General Funston to Gen- 

-.do,-. 

oral McCain (telegram). 


Same to same (telegram) 

—.do 

General McCain to Gen- 

—do.-. 

eral Funston (telegram). 


Mr. Belt to Mr- Lansing 

-do.-. 

(telegram) 


Mr. Lansing to Amencan 
Consular Officer s in Mex- 

—do 

ico (telegiam). 

Mr. Cobb to Mr. Lansing 

—do 

(telegram). 


Mr. Silliman to Mr. Lan- 

—do.-. 

sing (telegram). 


Mr. Lansing to Mr, Cobb 

—do—. 

(telegram). 

Mr. Cobb to Mi. Lansing 

-do.-. 

(telegram). 


Mr. Lansing to certain 

Mar, 11 

Consular Officers in Mex- 
ico, including Mr Parker 


(teteam). 

Mr, Garrett to Mr. Lan- 

—do 

sing (telegram). 


Mr. Lansing to Mr. Ed- 

—.do 

wards (telegiam) 

Mr Lansuig to all Ameri- 

—do 

can Consular Officers in 
Mexico (telegram). 


Mr. Carranza to Mr. Ar- 

Mar. 12 

redondo (telegram). 


Mr Belt to Mr. Lansing 

—do 

(telegrams). 

Same to same. 

Mar. 13 

--do 

Mr. Lansing to Mr. Silli- 

man (telegram). 

Mr. Bolt to Mr. Lansing 

--do™ 

(telegram). 


General McCain to General 

— do.— 

Funston (telegram) . 


Mr Lansing to Mr. Arre- 

—do™ 

dondo, 


Mr. Lansing to certain 
American Consuls (tele- 

...do.— 

gram). 

Mr. smiman to Mr. X,an- 

—do 

sing (telegram). 



Same subject. Very little assistance can bo had 
fiom Carranza Government m running down 
Villa Forces inadequate 

Withdrawal of Americans from Mexico. Reports 
Mormon colonists at Casas Grandes in danger 
fiom Villa 

Political affairs Indications are that Carranza 
authorities will resent American troops entering 
Mexico, 

Same subject. Is of the opinion that unless Villa is 
relenllcs^y pursued he will continue raids. Mexi- 
can Government troops grossly apathetic and in- 
efficient 

Same subject. Under circumstances believes Slo- 
cum justified In violating War Department’s order 
relative to sending troops across border. 

Same subject President has directod that an armed 
force be sent into Mexico to capture Villa and to 
prevent further raids. Directs to telegraph needs. 

Same subject. Department’s Mar. 9, 4 p. m., pre- 
sented to General Carranza. Sots forth c^ain 
questions which were submitted for answer. 

Same subject. President's statement to the press 
that adequate force will be sent into Mexico to 
capture ViUa. 

Same subject. Indications are that Carranza au- 
thorities will resent American troops entering 
Mexico. 

Same subject- Reply to Department’s Mar. 9, 4 
p. m. Asks that an agreement bo entered into 
whereby the troops of each country may cross the 
boundary in pursuit of bandits 

Withdrawal of Americans. Advise Mormons to 
talvc every precaution for their safety. 

Same subject. Advice to leave Mexico repeated to 
Mormons. Leaders arranging for train to brin|[ 
colonists out. Department should request mili- 
tary escort for this train. 

Same subject. If in your judgment conditions war- 
rant It, dose Consulate and advise Americans to 
leave. 

Same subicct. Americans arriving from Tampico 
region claim to have been ordered out by Carranza 
soldiers Entirely destitute Others expected. 
Transportation requested. 

Same subject. Request escort for Mormons who 
wish to withdraw from Casas Grandes. 

Same subject. Gives instructions as to withdrawal 
to border. 

Political affairs. States that Columbus raid affords 
no just reason for war. Proaence of American 
operating force in Mexico without a like jx‘rmi.s- 
sion being granted to the Mexican forces will be 
considered as an invasion of national territory. 

Same subject. Text of an appeal iasiied by Carranza 
to the people of Mexico. 

Same subject. Secretary of Foreign Affairs claims 
that war with Mexico would place United States 
in position of assisting reactionaries. 

Same subject. Kopiy to Secretary Acufia’s note of 
March 10. 

Same subject. Reply to the de facto Oovemmont’s 
note of March 10, presented to Secretary Acuha. 
Created a favorable impression 

Same subject. The President desires that the ex- 
expedition should not afford the slightest ground 
of suspicion of any other object than the dispers- 
ing the bands of marauders. 

Same subject. Incloses a statement concerning the 
object of United States military forces in 
Mexico which the President has authorized to be 
made public. 

Same subject. Instructs to keep Department in- 
formed as to temper of populace on border and the 
name of Mexican commander. 

Protection of Americans and American interests. 
Department’s February 5, g p. m., presented to 
Foreign Office. In reply to Department’s March 
8, 7 p. tn., ObregoD says that the situation at I^oe 
Mocliis has been misrepresented. 


Page 

482 

683 

482 

482 

483 
483 


483 


484 

484 

486 

683 

684 

684 

684 

684 

684 

486 

487 
487 

487 

488 

489 

489 

489 

m 



LIST OF PAPERS 


XLIX 


MEXIC 0— Continued 


Mr. Lansing to Mr. Silb- 
man (telegram). 


Mr Lansing to Mr. Rodg- 
ers (telegrams). 


Mr. Parker to Mr. Lansing 
(telegram). 


Mr. Lansing to Mr. Gar- 
rett (telegram). 

Mr. Polk to all American 
Consular Officers in Mex- 
ico (tolegi-am). 


Mr. Daniels to Mr. Lan- 
sing 

Mr. Polk to Mr. Bolt (tele- 
gram). 


Mr. Silllnion to Mr. Lan- 
smg (telegram). 


Mr. Dawson to Mr. Lan- 
sing. 


Mr. Polk to Mr. Parker 
(telegrams). 

Concurrent resolution of 
United States Cion gross. 


General Punston to Gen- 
eral McC’’am (telegram). 
Mr. Polk to Mr. Rodgers 
(telegram). 


Same to same (telegram),., 


Mr. Rodgers to Mr. Lan- 
sing (tologram), 

Mr. Arredondo to Mr. 
Lansing. 


Mr. Arredondo to Mr, 
Polk, 

Mr. Polk to Mr. Arredondo 


Date 

Subject 

Page 

1916 



Mar 13 

Protection of American oil interests. Tour tele- 
gram January 25, 7 p. m. Statement of Foreign 
Secretary that interests Mexican citizens only 
concerned is inaccurate. Stock of Compafiia 
Pctrolera Maritima owned by American citizens. 
Renew representations in behalf of company 
Protection of American mining interests Endeavor 
to have mining decree of Mar. 1, 1915, abrogated. 
Falling in this, seek to have rulmg for the pay- 
ment of taxes for the last teicio, apply to taxes now 
due Ask that metal export duties be reduced 
one half. If your efforts are to no purpose, obtam, 
If possible, an extension of time within which to 
pay taxes now due. 

7C2 

_._do 

714 


W ithdrawal of Americans from Mexico. Americans 
wish more facts as to international relations to 
enable them to determine whether they should 
leave. In the event of crisis to whom shall Amer- 
ican interests be entrusted^ 

685 

...do. 

Same subject . Furnish transportation to Americans 
mentioned in your Mar 11, 2 p. m., provided tiiey 
are absolutely destitute 

686 

Mar. 14 

Political affairs. Expedition will soon enter Mex- 
ico to pursue and capture Villa and his band. 
Permission has been granted to Mexican troops 
to cross international botmdary in hke cases. 
Same to Mr. Parker, all American missions in 
Central and South America and in Europe, Japan 
and China 

490 

...do 

Withdrawal of Americans from Mexico. Requests 
certain data concerning aid to be rendered to 
Americans in Mexico in case of necessity. 

Political affairs . Instructs to ascertain whether any 
orders have been given by Carranza to his military 
commanders as to course they should pursue m 
the event of our troops crossing the border. 

686 

Mar. 15 

490 

...do 

Same subject. Substance of reply to American 
note has been agreed upon but will not be formu- 
lated or presented until later. Attitude of Mexi- 
can Government to expedition of Amencan troops 
is said to bo favorable. 

491 

Mar. 16 

Protection of American oil interests. Transmits 
copy of what purports to be a decree issued by the 



First Chief, ordering the suspension of all exploita- 
tation of oil lands pending the issuance of the pro- 
posed new law on the subject. 

Withdrawal of Americans from Mexico. In case of 
necessity entrust reprosentafion of American 
interests to British or French colleague. 

762 

---do 

686 

Mar. 17 

Pohtical affairs. Concurrent resolution of Senate 



and House of Representatives of th<> United States 
setting forth the purpose of the expedition of 
American troops into Mexico. 

491 

-.-do 

Same subject. Reports the movements of General 
Pershing. 

492 

--do 

Protection of Americans and American interests. 
Request that campaign against Indians bo vigor- 
ously prosecuted and that sufficient troops be sta- 
tioned in San Xavier district for protection Amer- 
ican mining companies operating there. 

Political affwrs. Instructs to request General Car- 
ranza to Issue necessary orders to Chihuahua au- 
thorities to permit use of Northwestern Railway 
for transportation of supplies for American 
troops. _ , , 

666 

. Mar. 18 

492 

--do 

Same subject. Understands there is now complete 
understanding between Mexican and American 
forces. 

492 

...do 

Same subject. Protests that the consent expressed 
by the Mexican Government in regard to the 
crossing of armed troops over the frontier line is 
being erroneously understood. 

493 

...do.— 

Same subject. Incloses copy of note protesting the 
crossing of American troops into Mexico. 

498 

Mar. 1,9 

Same subject. Regrets that there should have been 

494 

any misunderstanding as to the attitude of General 
Carranza in connection with the crossing of the 
border. WiU be glad to receive any suggestions 
the Mexican Government may care to make as to 
the terms of a definite agreement. 







L 


LIST OF PAPERS 


MEXICO— Oontinned 


No. 

From and to whom 

Date 


Mr. Arredondo to Mr. Polk 

1916 

Mar. 19 


Mr. Arredondo to Mr. 
Lansing. 

...do—.. 


Mr. Rodgers to Mr. Lan- 
sing (telegram). 

...do 


General Scott to Mr. Lan- 
sing (telegram). 

Same to same 

Mar. 20 

_do 

2 

Mr. PoUc to Mr. Rodgers 
(telegram). 

...do. 

286 

Mr. Polk to Mr. Parker 

___do 


j 

Mr, Polk to Mr. Arredondo 

Mar. 21 

3 

Mr. Rodgers to Mr. Lan- 

...do.—. 


sing (telegram). 



Mr. Polk to Mr. Simpich 
(telegram). 

Mar, 22 


Mr Polk to certain Ameri- 
can Consuls in Mexico 
(telegram). 

Mr Polk to Mr. Rodgers 
(telegram). 

1 1 

1 1 

o d 

6 

Mr. Lansing to Mr. Rodg- 
ers. 

Mar. 24 

282 

Mr. Garrett to Mr. Lansing 

—do 


Mr. Arredondo to Mr. 
Lansmg. 

Mar. 27 

8 

Mr. Rodgers to Mr. Lan- 
sing (twegram) 

Mar. 28 

7 

Same to same (telogiam) ... 

—do. 

11 

12 

Mr. Lansing to Mr Rodg- 
ers (telegrams). 

Same to same (telegrams),. 

...do 

Mar. 29 


Mr. Baker to Mr, Lansing., . 

...do,.,.. 

12 

336 

Mr. Rodgers to Mr. Lan- , 
(telegrams). 

Mr. Parker to Mr. Lansing, , 

..-do-.,„ 

— do. 

8 

Mr. LansiEg to Mr. Daw- 
son. 

—do 


Subject 


Same subject. Submits a draft of an agreement in 
regard to the crossing of troops of both countries 
over the boundary line. 

Same subject States that Mexican Government 
can not pernait the occupation of Mexican towns 
byAmerican forces in the absence of an agreement. 
Same subject. Reply to Department’s note of Mar. 
18, 6 p, m , requesting use of railroad for transpor- 
tation of supplies for troops. 

Same subject. Gives location and movement of 
American troops in Mexico. 

Same subject. Gives places at which American 
troops ciossed the border and circumstances under 
which they crossed, as requested in communica- 
tion of Mar 19. 

Same subject. Instructs to assure Carranza that the 
purpose of the expedition is to capture Villa and 
that the American troops will be withdrawn as 
soon as that purpose is effected. That this Gov- 
ernment accepts m principle the reciprocal ar- 
rangement submit^ted by Mr Arredondo, 
Withdrawal of Americans from Mexico No funds 
available for indefinite maintenance of destitute 
Americans in Mexico. All Americans whoso preii- 
ence is not essential for business reasons should be 
advised to return immediately to this country. 
Political affairs. General Pershing has been in- 
structed to avoid occupying any Mexican town. 
Protection of Americans and American interests. 
Foreign OlBce states that orders have been issued to 
push with vigor the campaign against the Indians 
in the Yaqui Valley. 

Political affairs. Requests number, location and 
movements of troops m northwestern part of 
Sonora. 

Same subject. Ascertain the number, location and 
changes of troops along the border in your consular 
district. 

Same subject. Directs to sound the Mexican au- 
thorities as to the truth of reports that garrisons 
along the border have been leinforccii. 

Protection of American mining interests. If annul- 
ment or modification of mining decree has not yet 
been accomplished, conceptrato best ciTorta to se- 
cure longest possible time for payment of taxes. 
Protection of Turkish interests Incloses a petition 
from Jorge Elias, a Turkish subject, to the Secro- 
tario de Hacienda y Crodito Publico, asking for 
return of money taken from him by Mexican 
oiBcials at Nuevo Laredo. Asks good ollicos of the 
Department. 

Political affairs Draft of agreement concerning tho 
reciprocal crossing of troops over the boundary 
lino as amended by Mexican Government. 
Protection of American mining inter c.sts. E xiension 
of time for payment of mining taxe.s present terdo 
will bo given until May 1. Meanwhile further 
careful consideration will be given whoh* matter. 
Political affairs. Mexican attitude certain features 
of protocol. 

Same subject. Seeks use of railroad for bringing up 
supplies pending settlement of terms of protoc^ol. 
Same subject. Department has suggostoil to War 
pepartment to make appropriate arrungernentH 
to shup supplies to civilians in Mexico. Request 
that Chihuahua authorities be instructed to fur- 
nish adequate guards for trains 
Same subject. Incloses copy of tolcgram sent to 
commanding general, Southern Department, con- 
ceraing the consignment of goods to dvillans. 

Same subject. Definite reply promiseii to-morrow 
concerning use of railroads. 

affairs. Conservative estimate of invali- 
dated issues of paper money in the hands of Amerl- 

C£lZl£l« 

Protection of American oil Interests. Aeknowledges 
dimatch of Mar. 16, 1910. instructs to advise De- 
partment if any atempt is made to apply provl- j 
sions of this decree to American citizens. 


495 

497 

497 


499 


686 

500 

667 

500 


501 


601 

714 

797 


501 
714 

502 


503 

504 

504 

505 
633 

763 



UST OF PAPERS 


1916 

13 Mr. Rodgers to Mr. Lan- Mar. 30 
sing. 


Mr. Lansing to Mr. Daniels do 

19 Mr. Lansing to Mr. Rodgers Mar. 31 
(telegrams). 


17 Mr Rodgers to Mr.Lansing L— do 

(telegram) 


Mr. Baker to Mr. Lansmg. L-.do— . 


Mr. Cobb to Mr. Lansing Apr. 1 
(telegram) 

24 Mr. Lansing to Mr. Rodgers Apr. 3 
(telegram). 


26 Mr Rodgers to Mr. Lan- Apr 4 
sing (telegram), 1 

Mr Lansing to Mr. Arre- —.do 

dondo 

Mr Arredondo to Mr. Lan- Apr. 6 
smg, 

26 Mr Rodgers to Mr. Lan- —.do 

sing (telegrams). 

Mr. Lansmg to Mr. Rodgers --.do 


27 Mr. Rodgers to Mr, Lan- Apr. 6 
sing, 

30 Mr. Lansmg to Ml Rodgers do 

(telegram). 


28 Mr, Rodgers to Mr. Lan- Apr. 7 
sing (telegram). 


19 Same to same L— do.. 


Mr. Blocker to Mr. Lan- Apr. 8 
sing (telegram). 


Mr. Jussorand to Mr. Lan- Apr, 10 
sing. 


I Mr. Oobb to Mr. Lansing Apr. 11 
(telegram). 


34 Mr. Lansing to Mr. Rodgers — -do 


286 Mr. OanretttoMr.LansingL— do 


1280 General Funston to General Apr. 12 
McCain (telegram). 

Mr. Arredondo to Mr, Lan- —do 

sing. 


Political affairs. Agreement reached relative to 
consignment of supplies to civilians Mexican au- 
thorities irritated over the failure to supply infor- 
mation requested concerning the number and loca- 
tion of our troops. 

Withdrawal of Americans from Mexico. Reply to 
the letter of March 14, 1916. 

Protection of American mining mterests. Express 
to de facto Government Department's appreciation 
of extension of timehnut within which to pay 
minmg taxes 

Pohtical affairs. Informed by Cabrera that General 
Carranza and General Obregon think it will be 
necessary to request withdrawal of our troops in a 
short tune unless Villa is soon captured. 

Same subject. Incloses telegram from General Fun- 
ston which states that General Gavira has received 
no instructions from bis Government concerning 
the shipment of supphes 

Protection of Americans and Amencan interests. 
Ceitain foieigners executed by Villa. 

Political affairs Department informed that Chi- 
huahua authorities have received no instructions 
concerning the shipment of supplies Renew your 
efforts to Have appropriate instructions issued 

Same subject. U nable to reach Carranza or Obregon. 
Cabrera promised an mvestigation. 

Same subject Incloses a redraft of the proposed 
protocol. 

Same subject. Acknowledges the receipt of Depart- 
ment’s letter of Apr. 4. 

Same subject. I n regard to N orth western Railway, 
no reply has been received. Present attitude very 
unsatisfactory. 

Protection of Turkish interests. Request appro- 
priate authorities to order the return of the money 
taken from Jorge Elias, Turkish subject 

Political affairs. Informed that no instructions can 
be issued to Chihuahua authorities to piotect and 
forward supphes for American troops by railroad 

Same subject Withholding promised instructions 
regarding shipment of supplies creating bad im- 

E ression here. Use best efforts to have instructions 
isued 

I Same subject. Statement issued to press denying 
that Government ever authorized use of North- 
western Railway for supplies to troops. Under- 
stand no objection to shipment of supplies as com- 
mercial freight. 

Some subject. Submits statement of his action and 
reju’esentations in the matter of the request for the 
use of the Northwestern Railway for the shipment 
of supplies. 

Same subject. Vonous conflicting rumors of with- 
drawal of American forces and impending di66- 
culties being circulated by Mexican Consul at 
Engle Pass. 

Financial affairs. Requests American Government 
to urge upon Carranza the fulfilment of promises 
concerning the redemption and acceptance of 
paper money. 

Political affairs. Inability of a mining company 
Which has been shipping fuel regularly to Chi- 
huahua to got movement south from Juai ez during 
past week. 

Protection of American mining interests. American 
mining representative in Mexico City telegraphs 
that no dooroe exists for the extension of time for 
the payment of taxes. Ascertam whether those 
taking advantage of extension of time will be sub- 
ject to finos or penalties. 

Protection of Turkish interests. Money of Carlos 
Dc^nguez, a Syrian, taken by Mexican customs 
guards. Suggests Department request that when 
evidence shows no attempt at smuggling, money 
be returned, , „ . . , 

Political affairs. Reports orders believed to have 
been given by the Secretary of War to his chiefs at 
border points. 

Same subject. Regrets the Parral incident. Insists 
on the necessity of withdrawal of American troops 
from Mexican soil. 



LIST OF PAPERS 


Ut 


MEXIOO—Contmued 


No. 

Prom and to whom 

Date 


fil^Tno tn KAIYIA 

1916 
Apr. 12 

—do 

.„do 

4 

Mr. Cobb to Mr, Lansing 
(telegrams). 

Mr. Rodgers to Mr. Lan- 
sing (telegrams). 




Mr, Arredondo to Mr. Lan- 
sing. 

Apr. 13 

39 

Mr. Lansing to certain 
American in Mexico 
(telegram). 

Mr. Lansing to Mr. Rod- 
gers Ctdegram). 

„-do- — 

Apr. 14 

10 

Mr. Rodgers to Mr. Lan- 
sing (tdegram). 

Apr. 15 


Mr. Cobb to Mr. Lansing 
(telegrams). 

do 


—do 

Mr. Simpicb to Mr Lan- 
sing (telegram). 


Mr. Cobb to Mr. Lansing— 

Apr. 16 


General Funston to Gen- 
eral McCain (telegram). 

— ,do 


Same to same - 

Apr. 17 

—do 


Mr. Lansing to Mr. Rodg- 
ers (telegram). 


Mr. Letcher to Mr. Lan- 
sing (telegram). 

...do 

18 

Mr. Rodgers to Mr. Lan- 
sing (telegram). 

...do 



Mr. Letcher to Mr. Lan- 
sing (telegram) 

---do 

44 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

---do 


Mr Arredondo to Mr. 
Lansing. 

Apr. 18 


Mr. Lansing to certain 
American Consuls in 
Mexico (telegram). 

—do 


Mr. Lansing to Mr. Letcher 

...do 


(telegram) 


21 

Mr. Rodgers to Mr. Lan- 
sing. 

Apr. 19 

50 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

Apr. 20 


Mr. Arredondo to Mr. 
Lansing. 

‘—do. 

27 

i 

Mr, Rodgers to Mr. Lan- 
sing. 

-—do 

i 


Subject 


Pago 


Same subject. General Carranza instructs Mr. 
Arredondo to insist on the withdrawal of American 


514 


troops from Mexico 

Same subject. Reports attack on American troops 
at Parr^. 

Protection of Amoncan mining interests. Reply to 
Department's Apr. 11, 6 p. m. Instructions to 
collectors of taxes allowing extension of time for 
payment of mining taxes arc to be issuod>at once. 

Political affairs. Transmits note which states that it 
IS useless to discuss further the question of an agree- 
ment for the reciprocal passage of troojps across the 
border, while American troops remain on Mexican 
Soil- 

Same subject. Department informs all American 
Consular OfBcers in Mexico, except border Con- 
suls, of the Parral incident. 

Same subject. Inform Oarriinza that this Govern- 
ment believes that to withdraw American troops 
now would be to encourage ViJlistas. Seek tho 
cooperation of de facio Government that tho com- 
mon object of both Governments may more 
speedily be accomplished. 

Same subject. Representations made as directed in 
Department's April 14, 6 p. m. Officials insist 
upon withdrawal of American troopvS. 

Same subject. Transmits message of General Per- 
shing to General Piinston concerning the Parral 
attack. 

Protection of Americans and American interests. 
Pamily of John Lehr reported rescued by General 
Martinez 

Political affairs. Details of the attack upon Ameri- 
can troops at Parral. 

Same subject. Pershing reports no food nor forage 
in vicmity Santa Cruz. Will withdraw in direc- 
tion of Satevo. 

Same subject. General Pershing reports altitude 
of Mexican people and makes certain roconi- 
mendations. 

Same subject. Instructs to furnish Carranza with a 
copy of General Pershing’s report on Parral inci- 
dent 

Same subject. Troops apparently are being with- 
drawn from territory covered by American sol- 
diers. 

Same subject. No further discussion likely until 
formal reply to tho de facto Govommont'a note 
In regard to the withdrawl of troops is receivc<i. 

Same subject. Believes widespread plan exists to 
force immediate withdrawal Amoriean troops. 
Ultimatum to Colonel Brown from Moxictiu eoiii- 
mander forbidding Americans to swlvanco. 

Same subject. Quotes telegram from Mr, I-^etchcr, 
dated Apr. 17, 11 a. m., and urges to iiiiprcss 
upon Carranza the necessity of restraining his 
local commanders from independent action. 

Same subject. Transmits a telegram from General 
Gutierrez to Mexican Secretary of War wherein 
General Pershing Is blamed for the Parral incident. 

Same subject. Quotes telegram from Consul 
Letcher, dated Apr. 17 and reports Department's 
instructions to Mr. Rodgers for information and 
guidance of Consuls. 

Same subject. Acknowledges t^egram of Apr. 17, 
11 a. m.. States Department's instructions to Rod- 


514 
715 

515 


518 

518 


r.ID 


519 
667 

520 

521 


521 


521 


522 

522 


523 


524 

524 


gers. 

Protection of American mining interests. Now 
taxes effective July 1. Do not think much, if 
any, amendment possible. 

Political affairs. Inform Carranza that the per- 
sistent rumors that this Government favors cer- 
tain revolutionary plots are unfounded. 

Same subject. Bequests data relative to the num- 
ber and places of engagements between the Ameri- 
can and Villista forces. Also names of American 
commanders. 

Same subject. Because of the very bad conditions 
obtamingin Central Mexico, Consular Officers and 
Amencans have been instructed to use their own 
judgment as to leaving. 


7W 

524 

524 

525 


UKT OF PAPEES 


Lin 


MEXICO — Contimed 


No. 


From and to whom 


Date 


Subject 


Page 


25 


821 

57 

54 

26 

27 

68 

891 

60 

29 
1806 

30 


1314 

1172 


1688 


Same to same 

Mr. Lansing to Mr. Bodg- 
ers, 

Mr. Baker to Mr. Lansing.. 

Mr. Letcher to Mr. Lan- 
sing (telegram). 


Mr. Rodgers to Mr Lan- 
sing (telegram). 

Mr ECostetter to Mr. Lan- 


sing 

Mr. Adler to Mr. Lansing.. 


Mr. Lansing to Mr Rodgers 
(telegram). 


1916 

Apr. 20 

—.do 

Apr. 21 
—do 

..do 

—do 

— do— 


Same to same (telegram)— .| 

Mr. Letcher to Mr. Lan- 
sing (telegram). 

Mr. Rodgers to Mr. I>an- 
sing (telegrams) 


Same to same 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 


Mr. Lansing to Mr. 
Canada. 

Mr. Lansing to Mr. 

Edwards (telegram). 

Mr. Lansing to Mr. 
Rodgers (telegram). 

Mr. Rodgers to Mr. I/an- 
sing (telegram). 

General Funston to Gen- 
eral McCain (telegrams). 


j^Apr. 22 

—do—. 
Apr. 23 
Apr. 24 

...do 


Mr. Rodgers to 1 
sing (telegram). 


to Mr. Lan- 


Mr, Blocker to Mr, Lan- 
sing (telegram). 

General Funston to Gen- 
eral McCain. 

General McCain to Gen- 
erals Scott and Funston 
(telegram). 

Mr. Lansing to Mr. John- 
.son. 

Mr. Blocker to Mx. lisn- 
sing (telegram). 

Mr, Lansii^ to Mr. Jus- 
serand. 

Mr, Edwards to Mr. Lan- 


MrTXetoher to MUr. l<an- 
8^ (telegram). 


,,-do 


--do 

Apr. 26 
.-do — 

do 

,-_do— . 

1 do — 

Apr. 26 
I— do--,. 
—do—. 

U-do— -I 

Apr. 27 
I— do— . 

Apr. 2|8 
— 40^-1 


Protection of American mining interests. Trans- 
mits translation of proposed mining tax law. 

Protection of Turkish interests. Request that 
money of Carlos Dominguez be returned to him. 

Pohtieal affairs. Incloses telegrams from General 
Funston on the subject of Parral attack. 

Same subject. Because of evident purpose of Mexi- 
can authorities to force withdrawl of American 
troops, doubt that further shipments of supplies 
may be made over railroad. 

Same subject. Reports carrying out Department's 
instruction of Apr. 20, 6 p. m 

Protection of Americans and American Interests. 
Reports arrival of Mrs Lehr and three children 

Protection of Turkish interests Letter from the 
Federation of Oriental Jews of America reporting 
indigmties heaped upon Ottoman subjects, mostly 
of the Jewish faith Asks that Consul at Vera 
Cruz be instructed to accord protection to Ottoman 
subjects m that city 

Political affairs Instructs to see Carranza and urge 
the holding of conference between General Scott 
and Gener^ Obregon or some other high military 
officer. 

Financial affairs Report whether assurances men- 
tioned in SiUiman’s Jan 1, 1 p m , have been ear- 
ned out 

Political affairs. Informs that Pablo Lopez has been 
captured and that he has confessed to massacie of 
Amencans at Santa Ysahel 

Same subject. Appointment to see First Chief will 
be made for tomorrow. There apparently will be 
no trouble in arranging military conference. 
Rumors of impending trouble with the United 
States. 

Same subject Obrogon departs for border confer- 
ence 

Pnit ec ticn of A mei lean mimng interests American 
mining companies daim new decree more severe, 
in some respects, than present one. Renew your 
etfoits to obtain consent of de facto Government 
to accept payment present and last tercio's tax, 
on basis 8 pesos, and to effect material modifllcar 
tion in proposed decree 

Protection of I'uikish interests Instructs to use 
good offices in behalf of Ottoman subjects. 

Political affaiis Informs of Obion's coming to 
border. Gives certain instructions. 

Same subject. Seeks information as to where Obre- 
;on expects to meet General Scott and General 


Financial affairs Reply to Department’s 64, Apr. 22, 
4 p.m. No action yet as to banks of issue. Mora^ 
torium decree delayed. 

Political affairs Gives details of pursuit of Villa and 
of opposition of certain Carranza troops and popu- 
lace. 

Protection of American mining Interests. Reply to 
Department’858. Mexican Government considers 
that the taxes are fair m view of pnvilege given 
and will adhere to the present decree. 

Political affairs. General Obregon has gone to Tor- 
reon en route to Juarez. 

Same subject. Details of several engagements had 
by American troops with Villistas, 

Same subject. Gives Instructions to Generals Scott 
and Funston for their conference with Obregon. 

Embargo against the exportation of arms and muni- 
tions to Mexico. Requests cooperation of the 
Governor of California In preventing the smug- 
ding of anns and munitions into Mexico. 

Pditicai affairs. Obregon will confer with General 
Soott at Juarez, 

Finahcial affairs. Reply to note from the JYench 
Embassy of Apr. 10, Department deems further 
action inadvisable at this time. 

Political aftelrs. Reports arrival, of Obregon in 
Juarez. 

San^ stibject. Permission given to ship to Mlnaca 
for troops all supplies here awaiting shipment, 
special ooncessiom 


716 

798 
525 
527 

527 

667 

799 


627 


718 


799 

629 

629 

636 

530 

719 

529 


789 


635 



LIV 


UST OF PAPERS 


MEXICO— Continued 


No. 

From and to whom 

Date 

36 

Mr. Rodgers to Mr. Lan- 
sing. 

1916 

Apr. 28 

1452 

Mr. Canada to Mr. Lan- 
sing. 

...do..- 


Mr Lansing to the Pacific 
Mail Steamship Co (tel- 
gram). 

The Pacific Mail Steam- 
ship Co. to Mr Lansmg 
(telegram). 

Generals Scott and Fun- 

Apr. 29 

Apr. 30 

,..do 


ston to Mr Baker (tele- 



ujaI) ■ 

General McCain to General 
Scott (telogrom). 

Same to same. 

...do 

...do 


Generals Scott and Fun- 
ston to Mr. Baker (tele- 
gram). 

May 1 


Mr, Carothers to Mr. 

...do 


Lansing (telegram). 



General Scott to Mr. Baker 

...do 


(telegram). 


1332a 

General Funston to Mr. 

...do 


Baker (telegram). 



General McCain to Gen- 
eral Funston (telegram). 

—do 


Mr. Lansing to the Pacific 

...do 


Mail Steamship Go. 

Mr. Lansing to Mr Red- 
field. 

—.do 


Mr. Himt to Mr. Lansing... 

May 3 


Mr. McDonald to Mr. 
Lansing. 

j-.do. — 

44 

Mr. Rodgers to Mr. Lan- 

do, 

6 

sing (telegram). 

: Generals Scott and Fun- 
ston to Mr. Baker (tele- 
gram). 

— do 

1336a 

General Funston to Mr. 

Baker (telegram). 

Mr. Johnson to Mr. Lan- 
sing. 

May 4 

—do. : 


Mr, Lansing to Mr. 
Letcher (telegram). 

May 6 ! 

69 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

—do. — ; 


General Scott to Mr. 

...do i 


Baker (telegram). 


508 

Mr. Simpioh to Mr. Lan- . 

...do ] 


sing. 



Mr. Blocker to Mr. Lan- 
sing (telegram). 

May 7 1 


Subject 


Same subject. In view of the conference to be field 
by General Obregon with Generals Scott and Fun- 
ston, withdraws request for a eonferenee with Cnr- 
lanza 

Seizure and confiscation of American properties. 
Incloses a circular letter sent to certain pci sons niul 
firms calling upon them to contribute specified 
sums of money 

Withdrawal of Americans from Mc\ico. Requests 
Pacific Mail Steamship Co have one of its ships 
call at Manzanillo forAmencans awaiting passage. 
Same subject. Acknowledges telegram of Apr. 29. 
Asks that no penalty bo inflicted if steamer should 
bring passengers in excess of its certificate. 
Political affairs. Details of first meeting with Obro- 
gon. 

Same subject. Instructions given to Generals Scott 
and Funston for further discussions with Obiegon. 
Same subject. Further instructions for Generals 
Scott and Funston. 

Same .subject. States that deadlock certain to come. 
Pershing and other border commanders warned of 
tenseness of situation. Makes ceitaln recom- 
mendations. 

Same .subject. Situation critical Withdrawal of 
troops bemg insisted on. Villa reported active 
again. 

Some subject. From reliable source it is learned 
that, orders have been issued to prepare to crush or 
annihilate the American forces in Mexico in case 
of nonwithdrawal. 

Same subject. Gives orders supposed to have boon 
issued by Carranza to General Gomez to cut off 
American troops. 

Embargo against the exportation of arms and muni- 
tions into Mexico. Secretary of War directs until 
further orders have bcezj issued stop all arms and 
munitions of war from gomg into Mexico. 
Withdrawal of Americans from Mexico. Acknowl- 
edges telegram of Api 30. 

Same subject. Asks that the Collector of Customs 
at San Francisco bo instructed not to penalize the 
Pacific Mad Steamship Co. or the steamer Jv'cm- 
port in case the vessel takes aboard more passengers 
chan she has been authorized to carry 
Embargo on the exportation of arms. Governor of 
Arizona assures cooperation In preventing illicit 
trafilc in firearms and ammunition. 

Same subject. Governor of New Mexico to use all 
means in his power to prevent illicit traffic in arms 
and ammunition. 

Political affairs. Asks to be advised as soon as pos- 
sible of news of military conference. 

Same subject. Results of private conference be- 
tween General Scott and General Obrogon, Agree- 
ment reached for a gradual withdrawal of Ameri- 
can troops. 

Same subject. Various American commanders cite 
obstiuctive tactics of Carranza forcas. 

Embargo on the exportation of arms. E very assist- 
ance to be rendered by the Governor of California 
in p'reventing the illicit traffic in arms and ammuni- 
tion. 

Protection of Americans and American interests. 
Verify d^atches that American employees 
National Mines & Smelter Oo.» Magistral, Du- 
rango, disarmed and Ma^tral looted. If Ameri- 
c^s are In danger, advise them to leave. 

Political affairs^ Department informed that Gen- 
erals Scott and Funston have reaped satisfisetory 
agreement. Result of conference said to be aw^^ 
^ CJanaaza. AsoertaUi and tele- 

grapl; tne attitude of Carranza, 
lame subject. No word 1^ been received from 
Obr^on as ^whether the agreement reached is 
satisfactory to Carranza. 

Protection of American mining Interests. Oaxranta 
regime, through its local collector, dooilaree that 
tax payments made to the Maytorena-Vllla eile- 
, *5??® be_considered as a legal payment. 

spring.. 


633 


777 


534 

635 

635 

636 

636 

637 
789 

688 


790 

790 

537 

537 

539 
790 

668 

540 

540 

719 

540 






LIST OF PAPEES 


LV 


MEXICO— Continued 


No. 

From and to whom 

Date 

Subject 

Page 

72 

Mr. Lansing to Mr Lodg- 

1916 

May 7 

Same subject. Instructs to brmg the Glenn Springs 

541 


ers (telegram) 


incident to the attention of de facto authorities 
and to impress upon them seriousness of the act, 





especially at this time. 



Mr. Lansing to Mr. Block- 

-^do 

Same subject. Directs to render all possible assist- 

541 


er (telegram). 


ance in recovering bodies and protectmg the 
families of victims. 


47 

Mr Rodgers to Mr Lan- 

.__do 

Same subject Carranxa satisfied with general re- 
sults of conference but wishes ‘‘all explanations 

641 

sing (telegram). 



of reasons, etc.” omitted from formal written 
agreement. 



1346a 

General Funston to Mr. 

...do 

Same subject. Troops have been dispatched to run 
down bandits who recently raided Glenn Sprmgs 

542 

Baker (telegram) 




and Boqmllas. 


13 

Generals Scott and Fun- 

...do 

Same subject. Further discussions of informal 
nature between Generals Scott and Funston and 

542 

ston to Mr Bakei (tele- 



gram) 


Obregon and Amador. 


46 

Mr Rodgers to Mr Lan- 

-.-do 

Protection of American mining interests. Mining 

720 


smg (telegram). 


law effective May 1 practically the same as that 



transmitted with dispatch 26. Minor changes 
only. 




Mr. Blocker to Mr, Lan- 

May 8 

Political affairs. Further details of Glenn Springs 

5^ 


sing (telegram). 

raid. 


Mr Rodgers to Mr. Lan- 

...do 

Same subject . Dt facto Government has made pub- 
lic Its version of recent raid Also announced 

543 


smg (telegram). 





successful conference agreement 


16 

Generals Scott and Fun- 

do 

Same subject. Obregon has announced that Mexi- 
can Government would not ratify the recently 

543 

ston to Mr. Baker (tele- 
gram). 

Mr. Blocker to Mr. Lan- 



signed agreement . Obregon has suggested another 
proposition. 


1037 

...do 

Same subject. Report concerning the Glenn Springs 
raid and conditions on border. 

544 

smg. 


1349a 

General Funston to Mr. 

May 9 

Same subject. Certain Americans who were cap- 

546 


Baker (telegram) 

tured have escaped. 

19 

General Scott to Mr 

...do 

Same subject. Letter from Obregon to General 

546 

1 

Baker (telegram). 


Scott stating that he has been instmeted to reject 
the proposed agieemont. Other plans for the 
piolection of the border wiU be submitted by 
Obregon. 




Mr. Lansing to Mr. Mc- 
Adoo 

...do 

Embargo on exportation of arms. Requests certain 
instructions be issued to collectors of customs on 

790 




the Mexican border and at seacoast pomts con- 
cerning the release of shipments of arms into 
Mexico 

Withdrawal of Americans from Mexico. Be pre- 



Mr. Lansing to American 
Consuls on Mexican bor- 
der (telegram). 

—.do 

689 

pared to advise all Americans m your district to 
leave immediately for border. Turn over Ameri- 
can interests to British or French Consul in case, 




in your judgment, situation becomes unsafe. 



Mr. Lansing to Mr. Parker 

...do 

Same subject. Be prepared to act promptly, in 

689 


and all American Consu- 


accordance with Department's Mar. 11, 11 p. m. 



lar Officers in Mo.xico, ex- 
cept border Consuls (tele- 




826 

srsjxi/ • 

Mr. Hostetter to Mr. Lan- 

—.do 

Protection of Gbmese interests. States that he has 

796 


sing. 


succeeded in having all orders restricting the 
movements of Chmese annulled. 



Mr. Feiguson to Mr. Lan- 

May 10 

Embargo on the exportation of arms. Governor of 

79X 


sing. 

Texas will cooperate in every way with the Federal 
Government in preventing the illicit traffic of 
arms and ammuiution. 




76 

Mr. Lansing to Mr. Rodg- 

May 11 

Withdrawal of Americans from Mexico. If emer- 

689 

76 

ers (telegram). 

Same to same (telegram).. 

gency should arise, every effort will be made to 
provide facilities at all Mexican coast ports for 
accommodation American refugees. 

Protection of American mining interests. Continue 

720 

May 12 

efforts to obtain such reductions in pertenencia 
and export taxes as will be of greatest possible 








benefit to American mining interests. 



Mr. Bawson to Mr. Lan- 

May 18 

Political affairs Amei loans from interior report 
recruiting activities and Mexican preparations 

647 


sing (telegram). 





for war. 


830 

Mr. Lansing to Mr. Porker 
(telegram). 

.-do...- 

Withdrawal of Americans from Mexico. Give copy 
of Department's 286 to Mr. Bodg^. Telegraph 
number of Americans who have followed advice in 

690 




said instmetion. Again advise Americans. 


816 

Hr. Parker to Mr. Lansing 

May 14 

Protection of American oil interests. Preparations 

763 

(telegram). 

behag made to issue decree revising taxes on petro- 




leum produotiou. Scheme for nationalization all 
OH lands remains under consideration by the 






Government, 






liVl 


mT OS' PAPERS 


MEXICO— Continued 


No 

From and to whom 

Date 


Mr. Blocker to Mr. Lan- 
sing (telegram) . 

1916 

May 15 


Mr. SiUiman to Mr. Lan- 
sing (telegram). 

_„do 


Mr. Lansmg to Mr Parker 
and certain Consular Of- 
ficers (telegram). 

...do 


Mr Simpich to Mr. Lan- 
smg (telegram). 

...do.—.- 




Mr. Bowman to Mr. Lan- 
sing (telegram). 

May 16 


Mr. Ingraham to Mr Lan- 
sing. 

do 




Mr. Stadden to Mr. Lan- 
smg (telegram). 

— do-..- 

814 

Mr. Parker to Mr. Lansing 
(telegram). 

...do—. 

1418 

General Funston to Mr. 
Baker (telegram). 

j May 17 


Mr. lAnsing to Mr. Silli- 
man (telegram). 

May 18 

86 

Mr. Polk to Mr, Rodgers 
(telegram) , 

Qener^ Funston to Mr. 

Baker (telegram) 

Mr. Polk to the Interstate 
Commerce Commission 

...do— - 

1438 

...do 

do 


Mr. SiUiman to Mr. Lan- 
sing (telegram). 

...do 


Same to same (telegram).,. 

May 19 


Mr. Blocker to Mr. Lan- 
sing (telegram). 

...do 

76 

Mr. Rodgers to Mr. Lan- 
sing (telegram). 

—do 

893 

Mr. Lansing to Mr. Canada 

...do.— 

553 

Mr. Lansing to Mr. Simp- 
ich. 

—do 


Mr. SiUiman to Mr. Lan- 
smg (telegram). 

May 20 

o7 

Mr. Rodgers to Mr. Lan- 
sing. 

1 

— do— . 

86 

Mr. Polk to Mr. Rodgers 
(telegram). 

—do 


Subject 


Page 


Political allairs. Reported movement of de facto 
Government troops north to Chihuahua and Coa- 
hmla. Arrival of Amoi ican infanti y. 

Same subject Information is that Amoi ican troops 
have crossed m puismt of locent i aiders Gov- 
ernor says that presc*nt instiuctiona lue to oppose 
any such advances of Aiuencans into Mexico. 

Protection of Amei leans and Aiiieucan interests. 
Scott-Obrogon conference amicably concluded but 
without dofimto result. Both Governmonts con- 
tmumg negotiations. 

Embargo on the expor tation of arms. Recommends 
that for next week or 10 days no more arins or am- 
munition be allowed exported to Sonora. 

Pohtical affairs. Mayor of Frontcr.i has received 
instructions from Governor to organize the citizens 
£oi defense, treatmg the Question of a war as a 
ceitamty. 

Samo subject. Certain information conconiing the 
United States military forces opiauting in the 
State of Chihuahua. 

Withdrawal of Americans from Mexico. Aincneans 
reluctant to leave their homes . N o means to guard 
against hostile developments except by calling 
Americans to Manzanillo and having naval vc.ssel 
heio Asks that arrangements be made for steam- 
ers passing foi noith to call. 

Same subject. Amei leans being discreetly advised 
to leave m accordance with Department‘s instruc- 
tion Gives facts about American colony. 

Political affairs. Instructions given to commanding 
officer of American troops in vicinity Jioquilias 
to leturn to American side of the border. 

Same subject. If you think Governor apt to oppose 
pursuit of bandits, discreetly call to bis attention 
the negotiations of Generals Scott and Obregon. 

Same subiect. Investigate reported extensive troop 
movements toward the border 

Same subject. Heavy movement of troops tovard 
the border reported. 

Embaigo on the exportation of arms. Another car 
of munitions discovered anti taken possession of by 
American foices at Eagle rass, I'ox No marking 
showing that it contained explosives Ask.s an 
investigation 

Protection of American mining interests. New 
Governor of Zacatecas issued order recently giving 
all ow'nois of mines 30 days to begin working them, 
othorwuso mlmng laborers will bo permitted to 
woik thorn for their own account. 

Political affairs. Eopartmont’s May 18. 8 p. m. 
Governor showed me instructions from Eirst ( 'hiof. 
If they mean what they plainly say, a clash is 
within the possibilities. 

Same subject. Confirmation of conccntiation of 
troops of de facto Government at Alhmdo has been 
rccefvod. Further information of other move- 
ments. 

Same subject. In reply to Hepartment’s Wi, May 18, 
Obregon says that troops moved north to comply 
with promises to protect border. 

Seizure and confiscation of American properties. 
Protest the collection of forced loans frtmi Amer- 
ican citizens. 

Protection of American mining InteresUs. Iteply to 
despatch No. 508. Report any attempt by local 
authontios to coliect taxes from an Ainorlcuu citi- 
zen whicli he has ulioady paid to i«irsons in de 
facto authority. 

Political affairs. Governor lefiemted Jn another 
private conference that his peremptory orders 
were to attack any invading troops. All argu- 
ments and reasons, including X)epmnient*s sug- 
gestion, produced no impression, 

IProlection of American oil interests. Discusses tlie 
nm oil taxation system under contemplation t>y 
the Mexican Government, General idea of the 
proposed system is quality and value tax^n 
rather than that based on quantity. 

Protection of American mining interests Endeavor 
to obtain withdiawal of decree whereby flovemor 
Zacatecas ordered mine owners to bo^n operations 
within 30 days. 


547 

548 

660 

791 

548 

548 

690 


549 

549 

550 

550 
791 

720 

560 

551 

551 

770 

720 


m 

763 

721 



LIST OF PAPBES 


Lvn 


ME XIO 0— Continued 


No. 

From and to whom 

Date 


Mr. Agmlarto Mr.Lansmg_ 

1916 
May 22 

82 

Mr. Rodgers to Mr. Lan- 
sing (telegram). 

...do 


Same to same (telegram)... 

May 23 

84 

Same to same (telegram)... 

...do.... 


Mr. Daniels to Mr. Lansing 

—do.... 


Mr. Polk to Mr Arredondo. 

May 25 

1495 

Gencial Funston to Mr. 

Baker (telegrams). 

Same to same (telegram) ... 

May 26 

,-do.... 

1615 

Same to same (telegram)... 

May 29 

1518 

Samft t.o same . . 

do 

111 

Mr. Polk to Mr Rodgers 
(telegram) . 

May 31 

102 

Mr. Rodgers to Mr. Lan- 
sing (telegram) 

June 1 


Mr Polk to Mr, Dawson 
(telftgium). 

—.do 


Mr. Polk to Mr. Rodgers 
(telegram). 

...do 



110 

Same to same (telegram) - 

June 2 


Mr. rhiwson to Mr. Lan- 
sing (telegram). 

...do 


Mr. Polk to Mr. Daniels. . . 

Juno 3 

114 

Mr. Rodgers to Mr. Itan- 

...do..... 

sing (telegram). 



Mr. Edwards to Mr. Lan- 
sing (telegram). 

Juno 4 

117 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

June 5 


Mr, Simplch to Mr. Lan- 
sing (tdegram). 

...do..... 

i 


1 

117 

Mr. Rodgers to Mr, Lan- 
sing (tdegrams). 

June 6 


Subject 


Page 


Political affairs Demand of de facto Government 
of Mexico for the withdrawal of American troops. 

Same subject Understand Cabinet here i epudiates 
alleged ordeis mentioned by Governor of Coahuila 
concermng probable attack on American forces. 
Doing all possible to stop forces. 

Same subject. Secretary for Foreign Affairs said 
Americans were apparently acting in bad faith by 
sending American military force into Coahuila. 
Departuie of special messenger for Wasbrngton 
with note 

Protection of Amencan mining interests. Secretary 
of Treasury telegraphed Governor to abandon all 
such action against mines. Reply to Department’s 
86 . 

Withdrawal of Amei icans from Mexico. The M ars. 
if It has not already sailed from Mazatlan, will 
afford transpoitation to Amencans in case emer- 
gency anscs 

Political affaiis Information as reque.sted by Mr. 
Arredondo m his letter of Apr 20, 1916 

Same subject. Cervantes, notorious Villista, re- 
ported killed in engagement with American troops. 

Same subject. Press bulletin announces that Gen- 
eral Qavira intends to confer with Pershing as to 
rounding up of outlaws. Certain instructions 
given General Pershing. 

Same subject Neutral natives Namiquipa, at the 
suggestion of General Pershing, organized small 
detachment for the protection of peaceful inhabit- 
ants. 

Same subject Hostile attitude of General Cavasos. 
Instructions to act conservatively given to Gen- 
eral Pershing 

Same subject. Instructs to secure a copy of note 
just sent by Mexican Government and report 
whether it expresses opinion of Government. 

Same subject. Department’s 111 Foreign Office 
to-day asserted that note represented exact senti- 
ment and determination of Mexican authorities 

Protection of Amencans and American interests. 
Standard Oil Co has offered to place at your 
disposal for Amencan refugees any of its steamers 
in Tampico harbor, m case of emergency 

Same subject. Reports from Sonora indicate Yaquls 
again menacing life and property. Revest sta- 
tioning of garrisons Yaqui territory suflicient to 
afford security against sudden raids. 

Protection of American oil interests. Newspapers 
report beginning Juno 1 all exploiters of petiolcum 
deposits Mexico required to pay bimonthly inspec- 
tion foe $300 Mexican gold. Telegraph whether 
report correct. 

W Ithdrawal of A moricans from M oxico . XT rges that 
transport be sent to take away some 200 persons 
who wish to leave the mterior now but are without 
fund.s. 

Protection of Americans and American interests 
Asks distribution of naval vessels on Pacific coast 
of Mexico so as to cover certain ports, thus afford- 
ing moral protection to the Americans at those 
places. * 

Protection of American oil interests. Department’s 
116, June 2, 6 p. m. Fee as stated proscribed; de- 
clared necessary for supervision in order to protect 
public. 

Political affairs. General Gavira m an interview 
with Consul Edwards states that arrangements 
entered into by General Pershing and himself 
would eliminate all danger of conflict. 

Same subject. Instructs to bring to attention of ap- 
propriate authorities recuritmg activities of de la 
Rosa. 

Protection of American mining interests. Decree 
No. 66, dated May 18. Mining properties in 
State which continue idle more than 30 days from 
date of decree subject seizure and operation by 


652 

563 


664 


721 


664 

564 

565 


565 


665 


666 


764 


601 


765 


566 


667 

721 


Political affairs. In reply to Department's 117, June 
6, 4 p. m* Urgent representations made and in- 
znediate attention promised. 


567 






LYm 


UST OF PAPERS 


M EXICO— Continued 


No. 

From and to whom 

Date 



1916 

125 


June 6 

Mr. Daniels to Mr Lan- 
sing. 

...do 




Mr. Lan^g to Mr. Daw- 
son (telegram). 

do 



1667 

General Funston to Mr. 

June 7 

Baker (telegram). 



Mr Garrett to Mr. Lan- 

-.do 


sing (telegram) . 


130 

Mr. Rodgers to Mr. Lan- 

...do 

sing (te^gram) 


126 

Mr. Lansing to Mr.Rodg- 

...do 

ers (telegiam). 

Mr. Lansing to Mr. Silli- 

June 8 



man (telegram). 


85 

Mr. Rodgers to Mr. Lan- 
sing. 

...do 



Mr Robertson to Mr. Lan- 

June 9 


sing 


1477 

Mr. Canada to Mr. Lan- 

...do 

sing 



Mr Lansing to Mr. Hanna 

...do 


(telegram) . 


129 

Mr. Lansing to Mr. Rodg- 

June 10 


ers (telegram). 



Mir, Silliman to Mr Lan- 

do 


sing (telegiam) 

Mr Garrett to Mr. Lansing 

June ir 

June 12 

...do 

1 telegrams) 

Ramft t.r» samo 

131 

Mr. Lansing to Mr Rodg- 


ers (telegram). 

Mr. Silliman to Mr. lian- 

...do 


sing (telegram). 



Mr. Garrett to Mr. Lan- 

...do 

142 

sing (telegram). 

Mr, Rodgers to Mr, Lan- 
sing (telegram). 

June 13 

135 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

...do 



Mr. Garrett to Mr Lan- 

June 15 


sing (telegram). 

Mr. Johnson to Mr, Lan- 

...do 


sing (telegrams) 



Same to same _ ^ 

...do..... 

141 

Mr. Lansing to Mr. Rodg- 

...do 


ers (telegram). 


1616 

General Funston to Mr. 

...do 

Baker (telegram). 



Subject 


Pag© 


Same subject. Rdsum6 of conditions m Mexico 

Piotection of Americans and Amciican interests. 
Acknowledges the receipt of Department's letter of 
June 3, 1916. Diiections have been given to the 
commander of the Pacific Fleet. 

Withdrawal of Amencans from Mexico. No funds 
available for maintenance of refugees while in this 
countiy. Furnish transportation to absolutely 
destitute Amencans 

Political affairs. Attitude of the Mexican de facto 
Covemment authorities toward activities of Luis 
de la Rosa and Aniceto Pisano. 

Same subject. Reports that recruiting efforts of do 
la Rosa had sanetion of de facto Government and 
that Austrian Consul at Monterey openly advo- 
cated the anti-American demonstration in Mon- 
terey 

Protection of American mining mtere.sts. Orders 
have been issued to prevent any collection of taxes 
on mining properties by State authorities. 

Same subject Request that decree 56, dated May 
18, signed by Callcs bo nullified. 

Political affairs. Investigate the report that de la 
Rosa has the sanction of de facto Government in 
his lecruitmg activities. 

Protection of American oil interests Forwards 
translation of the recent decree which provides for 
an inspection fee in the matter of the exploitation 
of oil lands 

Political affairs. Submits report on the plan of San 
Diego and other conditions in the Monterey sec- 
tion. 

Seizure and confiscation of American properties. 
Plan to collect forced contributions from Ameri- 
cans bas been abandoned. 

Withdrawal of Amencans from Mexico. In case of 
danger, close Consulate and come to border. Amer- 
icans should be advised to do likewise 

Political affairs. Department reliably informed that 
de la Rosa is being aided and abetted by Carranza 
officials m his lawlessness. Bring to the attention 
of Carranza. 

Same subject Governor has urged General Ricaut 
to cooperate in pursuit of do la Ftosa. 

Same suriject Part of do la Rosa outfit raided Texas 
45 miles above Laredo 

Same subject. Another invasion of Texas by small 
band of armed Mexicans. 

Same subject. Inform authorities that do la Rosa 
invaded Texas 45 miles above Laredo. 

Same subject General Ricaut states that entire 
band of de la Rosa has been captured Rosa hav- 
ing escaped was later arrested in Monterey. 

Same subject. Further facts of Laredo incident—.. 


567 

669 


691 


568 


722 

722 

560 

765 

570 

779 


572 


573 

573 


574 

574 

574 


Same subject. Department's 131, June 12, 5 p. m., 
complied with. Foreign Office informed mo de la 
Rosa prisoner at Matamoros. Numercu.s previous 
representations concerning de la Rosa of no avail. 

Same subject. Inform authoritic.*} that leader of re- 
cent raid above Lurodo has been killed. Ho wore 
Carranza uniform. Papers on his i>orson showed 
him to be Colonel Villareal of ('arranza army, 

Same subject. Much anti-Amoncan feeling in 
Neuvo Laredo. 

Same subject . Bandits crossed river at San Ygnad o 
and attacked a part of our troops. General Ricaut 
fears a general engagement with troops sent up to 
suppress raiders should our troops cross river in 
pursuit 

Same subject. General Ricaut says that he has cap- 
tured 40 of de la Rosa’s band and that de la Rosa 
himself is In Jail at Monterey. States that he has 
left men well posted on border. 

Samesubject. Inform authorities that feeing is very 
tense among Texans as a result of attack on Ameri- 
can guard 30 miles below r..aredo. 

Same subject. Carrancista troops are said to be in 
of bandits who attacked American guard 
below Laredo. 


574 


575* 


575 

575 

575 

m 

m 


UST OJF 1>APERS 


ux 


MEXIO 0— Continued 


No. 


From and to whom 


Date 


Subject 


339 


340 


1642 


151 


1916 

Mr Lansing to Mr. Parker June 16 
(telegr^). 


Mr. Lansmg to Mr. Baker. 


...do 


Mr. Lansmg to Mr. Parker 
(telegram). 


June 16 


Mr. Ingraham to Mr. Lan- ...do 

sing 

Mr. Garrett to Mr. Lan- June 17 


General Funston to Mr. 
Baker (telegram). 


—-do 


Mr. Garrett to Mr. Lan- 
sing (telegram) 

Mr. Johnson to Mr. Lan- 
smg (telegram) 

Mr. Dawson to Mr. Lan- 
sing (telegrams). 


—do 

...do 

...do 


Mr. Cobb to Mr, Lansing 
(telegiam). 

Mr. Dawson to Mr. Lan- 
smg. 

Admiral Winslow to Mr. 
Darnels (telegram). 


-.do. — 


June 18 
June 19 


Mr. Brown to Mr. Lan- 
sing. 

Mr, Lansing to Mr Mo- 
Adoo (telegram) . 



Mr. Neale to Mr. Lansing.. 


-do- 


Mr. Lansing to Mr. Ar- 
redondo. 


Juno 20 


Mr. Lansing to Mr. Aguilar 


-.do—.. 


Mr. Blocker to Mr. Lan- 
sing (telegrams). 


—-do 


Same to same--^™ do-., 

Mr. Lansingto Mr. Rodgers ...do—., 
(telegrams). 


Withdrawal of Americans from Mexico. Depart- 
ment does not consider that presence in Mexico 
Cityof families of American business men is essen- 
tial for busmess reasons. Continue to advise 
Americans to leave. 

Same subject. Requests that transport be sent to 
Tampico and Vera Cruz for the purpose of convey- 
mg such Americans as desire to return to the 
ITmted States. 

Same subject. Induce as many Americans as pos- 
sible to take passage for XJmted States on transport 
whidi War Department has been requested to send 
to Tampico and Vera Cruz. 

Same subject Transport Sumna" ordered to be put 
in commission. 

Political affaus. Papers found on some of the dead 
raiders identify them as Carranza men. 

Same subject. Telegram from General Trevmo to 
Geneial Pershmg stating that he has orders from 
his Government to prevent any movement of 
American troops to the south, east or west. Reply 
of General Pershmg. 

Same subject. Another raid of larger proportions is 
bemg planned. 

Same subject. American cavalry crossed border. 
More to follow 

Same subject. Entrance of any more American 
soldiers or sailors mto Mexico to be considered as 
an act of war. 

Protection of Americans and American interests. 
Villistas raid camp of San Juan Mme Company. 

Political affairs. Landmg of naval oflBcers and men 
prohibited. 

Same subject. Party from Annapolis while in shore 
for parleying with Mexicans was fired upon. One 
member gravely wounded and others taken pris- 
oners. Crow returned. 

Same subject. ' Details of the attack on the boat 
from the Annapolis. 

Embargo against the exportation of arms and muni- 
tions into M oxico -4.sks that collectors of customs 
be instructed to hold up all shipments of muni- 
tions of war to Mexico, regardless of recent permits 
granted by the Department of State or by the 
President. 

Protection of American mining interests. Protests 
the arbitrary interference of ce facto Government 
with the property of the Cube Mining <fe Milling 
Co and the Mina Mexico Mimng Co. 

Political affairs. Asks that American note in reply 
to the communication from Sefior Aguilar of May 
22, 1016, be transmitted 4o bun. 

Same subject. American reply to demand of de 
facto Government of Mexico for the withdrawal 
of American troops. 

Seizure and confiscation of American properties. 
All military commanders m neighborhood of Amer- 
ican ranches within a radius of 100 miles of the 
border have been ordered by Governor of State 
of Ooahuila to immediately begin gathering of 
aJl horses and cattle thereon. 

Same subject. Confiscation of American brewery 
at Sabinas. Raid on American owned hacienda 
on Mexican side near Guerrero- 

Same subject. Bring to attention of Carranza the 
report that the authorities in the northern part of 
Ooahuila have seized or are about to seize Ameri- 


692 


692 


693 


576 

577 


677 

677 
578 

670 

678 
578 


678 

792 


722 


580 

581 
779 


780 

780 


Mr. Lansing to the British 
Consol, Salina Cruz (tele- 


-do— - 


163 


At. Rodgers to Mr. Lan- 
sing (teiegTAm). 

Mr. Hostetler to Mr. Lan- 
sing (telegram). 



Mr. L^nslzig to Mr. NaonJ 


June 21 


can stock. . ^ 

Withdrawal of Americans from Mexico. Advise 
all Americans in your district to withdraw from 
that district. 

Same subject. ArraMements for transportation 
Americans to Vera CTruz. Protection promised. 

Same subject. Consulate closed. Have arrived 
with most Americans in district. Protection af- 
forded en route. 

Political affairs. States purpose of American 
Government in the event of hostiliti^ Same to 
other Latm American represeatatilH in Wash- 
ington. 


693 

693 

694 

592 




No 

From and to whom 

Date 

165 

Mr Rodgers to Mr. Lan- 
sing (telegram) 

1916 

June 21 

153 

Mr Lansing to Mr Rodg- 
ers (telegrams) 

...do 

167 

Same Rf5,Tnn _ _ _ 

„.do 

British Consul, Salma Cruz, 
to Mr Lansing (tolegi am) 

--.do 


Mr Baker to Mr Lan- 
sing. 

...do 

160 

Mi . Lansing to Mr, Rodg- 
ers (telegrams). 

June 22 

1641 

General McCain to General 
Funston (telegram) 

—do 

1734 

General Furston to Mr. 

Baker (telegram) 

Ml Canada to Mr Lansing 
(telegram). 

...do 

...do 


Mr. Lansing to Mr Canada 
(telegjam) 

-..do 


Mr Lansing to Bi itish Con- 
sul, Salma Cruz (tele- 
gram). 

...do 

159 

Mr Lansing to Mr. Rodg- 
ers (telegram) 

...do 

353 

Mr. Lansing to Mr. Parker 
(tdcgrain) 

...do 

1766 

Mr.GuyanttoMr Lansing 
(telcgiara) 

General Funston to Mr, 
Baker 

Mr. Blocker to Mr. Lansing 
(telegram) . 

...do.-., 

June 23 

...do 


Mr Lansing to Mr Blocks 
(telegram). 

--do 

164 

Mr. Lansing to Mr. G uyant 
(telegiam). 

Mr, Lansing to Mr. Rodgers 
(telegram) . 

Mr, Lansing to Mr. Daniels 

—.do 

— do.-- 

— do-.,. 


Mr. Daniels to Mr. Lansing 

...do 1 

ine 

General Funston to Mr. 

Baker (telegram). 

Mr. Arredondo to Mr. , 
Lansing 

Mr. Lansing to Mr, Sun- . 
pich (telegram). 

June 24 

.—do i 

-do-— 3 


Mr. Slmpich to Mr. Lan- . 
sing (telegram). 

.-do-— 


Mr. Lansing to Mr. Canada . 
(telegraj;^ 

Mr. Ingraham to Mr. . 
Lansing. 

Mr.Lansmg to Mr.Rodgers 
(telegram). 

-do—, i 

168 ; 

-do— £ 

June 25 I 


Subject 


Same subject. Bulletin from Mpxiean War Ofnoe 
announces engagement in State of Chihuahua 
between ^menoan and Mc'ican forc-es Bulletin 
generally interpreted as beginning of hostilities 

Seizure and confiscation of Amciiean propeities. 
Bequest immediato orders to stop wholesale con- 
fiscation of hoises and cattle belonging to Amcii- 
cans in the State of Coahuila. 

Same subject. Insist that Governor of Coahuila be 
immediately ordered to desist from anti-Ameri- 
can activities. 

Withdrawal of Americans from Mexico Majority 
of Amei leans hero will not withdraw unless abso- 
lutely necessary Advisable that cruiser he sent. 

Same subject Transport Sum^icr is bring made 
ready for the return of refugees fi oni Vera Cruz 
and Tampico, Mexico. 

Politick affairs Accounts of clash between Ameri- 
can and Carranza troops at Carnzal as given to 
General Bell by Mexican Consul Qaraa and an 
American, 

Same subject No direction should be given to 
Qonerrl Pershing to make the moves which he 
recemrcends until off'cial leport is leeiMved and 
traii«nultod here and action authorized from here 

Same subject Report fiom General Pershing con- 
cerning Carrizal attack. 

Withdinwal of Americans from Mexico. What 
provision will be made for EnRh.‘'h and other 
foicigneis seeking lefugc on the boat? 

Same subject Aftci Americans haxo been taken 
aboard, foreigners wdl bo given refuge on vessels 
to the extent of the room available. 

Same subject It is believed that Admiral Wins- 
low will have naval vessel at Salinn C'luz in few 
days All Amei leans should withdraw while this 
oppoitunity presents itself 

Same subject. Request that Guadalajara authori- 
ties bo instructed to permit Americans to travel 
ouipilroads 

Same subject Americans ean take refuge on war 
vessel at ^'e^a Oiuz until arrival of transport. 
Destitute refugees will be given transpoitation to 
their homes, aftei whieh finaneiiil assistance ceases. 

Same subject Rciiucsts authoiitv to slnp Porto 
Rieaus to New Oilcans by froightei 

Political alTaiis. More details of Carrizal clash. 


amo subject Seven thousand goats and sheep, 
piopoity of Mr. Boicourt, an Amoncaii citizen, 
have been seized and earned away. 

Seizure and confiscation of Anioriean properties. 
Time inopportune for making representations con- 
cernmg property of Mr. Boicoiirt. . 

Withdrawal of Americans from Mexico. Sond 
Porto Ricans on freighter to New Orlean.*!. 

Same subject. Insist that Americans taken from 
tiam from Mexico City be released. 

Same pbjoct Asks whether certain arrangements 
for the removal of refugees meet with the approval 
of the Navy Department. 

Same subject. Acknowledges receipt of Depart- 
ment s letter of June 23 and agrees to proposed 
arrangement. 

Political affairs. Further report concerning (Carrizal 
engagement 

Same subject. Informs American Government in 
reference to Carrizal incident, 

Protection of Americans and Ameriwn interests. 
Request authorities not to execute sentoner against 
Hand until opportunity is afforded th.8 Govern- 
ment for investigation. 

Withdrawal of Americans from Mexico. Does 
pepartmont authorize furnishing transportation to 
destitutes from border to homes in Stales? 

5^6 subject. Confer with agent of Ward Lhee who 
has been instructed regarding transportation of 
refmrs on Monttrey. 

3^0 s ibjcct. Will transport Sumntr bo reimiri 
additional trips to Mexico for refugees? 
Political affairs. Demand for the release of Amei 
can prisoners taken at Carrizal. 


592 


7S0 

781 

694 

694 


593 

593 

695 

695 

695 

605 

696 

696 


594 

781 

781 

696 

696 

697 

69K 

594 

m 

670 

608 


505 



No 


From and to whom 


Date 


Subject 


Page 


1786 General Funston to Mr. June 25 
Baker (telegram) . 

Mr Blocker to Mr Lan- ...do 

sing (telegram). 

185 Mr. Rodgers to Mr. Lan- June 26 
smg (telegram). 


Mr Simpich to Mr. Lan- ...do. 
smg (telegram) 

Mr. Siiliman to Mr. Lan- ...do. 
smg (telegram). 


The Oil Fields of Mexico ...do. 
Co. to Mr. Lansing. 


Mr. Lansing to Mr. Neale— L-. do 


British Consul at Chihua- Juno 27 
hua to BntiSh Embassy, 

Mr. Lansing to Mr. Avery ...do 

(telegram). 

Mr. Daniels to Mr. Lansing do 

192 Mr. Rodgers to Mr. Lan- June 28 
sing (telegram). 


Mr. Arredondo to Mr. Lan- — -do 

sing. 


Mr. Simpich to Mr. Lan- —.do- 
sing (telegram). 

Mr. Lansmg to Mr. Daw- — do. 
son (telegram). 


Mr. Lansing to Mr. Hanna 
(telegram). 

—.do 

Mr. Lansing to Mr. Cobb 
(telegram). 

—do— 

Mr. Lansing to Mr. Sim- 
pich (telegram). 

...do 

Mr. Lansing to Mr. Daniels. 

— do-..- 

Mr. Cobb to Mr. Lansing 
(telegram). 

Juno 29 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

—do 

Mr. Guyant to Mr. Lan- 
sing (telegram). 

June 30 

Mr. Lansing to Mr. Baker.. 

July 1 

Mr. Lansing to Mr. Daw- 
son (telegram). 

-.do 

Mr. Rodgers to Mr. Lan- 
sing (telegram). 

-do- — 

Mr, Lansing to Mr. Guyant. 
(telegram). 

...do — 


Same subject. An account of the C amzal encounter 
as given by Captain Morey 

Protection of Amencans and American mterests. 
Consulate at Torreon stoned by mob. 

Pohtical affairs Depaitmeut’s msti action 108, 
June 25, Ip. m , complied with. Assured com- 
munication would be brought to attention of Gen- 
eral Carranza immediately 

Protection of Americans and American interests. 
Mexican version of the Hand incident 

Scizme and confiscation of Ameiicau properties. 
Governor of Coahuda sent woid that military ap- 
propriation of stock on American properties was 
unauthorized, and stock is to be returned to owners. 

Protection of American oil interests. Incloses copy 
of decree No. 24, and copy of an ‘ ‘Aviso ’ ’ i elatmg to 
the same decree; both emanating from the Gover- 
nor of the Slate of Vera Cruz. WiU look to Depart- 
ment m case attempt is made to apply this decree. 

Pi otection of Amei ican mining interests. Acknowl- 
edges the receipt of letter of June 19, 1916. The 
deciecs mentioned in the letter were the subject of 
recent representations to the dt facto Goveinment. 

Political affairs. States number of American troop- 
ois are interned in penitentiary at Chihuahua. 
Well treated. 

W ithdrawal of Americans from M exico . Advise all 
Amencans m Qumtana Roo to withdraw from 
Mexico immediately. 

Same subject. Submits proposed alternative instruc- 
tions to naval commanders for choice and approval 
of State Department. 

Political affairs. Orders to release prisoners will be 
given. Answer as to future course of action re- 
quired by American Government will be given 
later. 

Same subject. Claims that some 300 peaceful per- 
sons have been ariested and maltreated by Amer- 
ican forces before being released That Apaches 
attached to Peishing’s command are committing 
all kinds of outrages. 

Seizure and confiscation of American properties. 
Military authoiities Nogales are seizing valuable 
ores and bullion belonging to Americans. 

W Ithdrawal of Americans from Mexico. This Gov- 
ernment feels that it can not bo responsible for 
safety of Americans who disregard advice to leave 
immediately. Same to Mr Parker and other 
American Consuls. 

Same subject. Telegram of June 28 to the Consul 
at Tampico, repeated to Consul General Hanna. 
Instructs to hand copy to all Consuls now in San 
Antonio. 

Same subject. Telegram to the American Consul at 
Tampico, June 28, 1916, repeated to Collector Cobb. 

Same subject. Furnish transportation to absolutely 
destitute American refugees. 

Same subject . Acknowledges letter of June 27 from 
Navy Department. 

Protection of Americans and American interests. 
San Juan Mining Go. again raided. No protec- 
tion afforded although the Carranza authorities 
have been continuously requested to do so. 

Seizure and confiscation of American properties. 
Request authorities order depredations upon 
American property in Sonora stopped and restor- 
ation seized property. 

Withdrawal of Americans from Mexico. Quaran- 
tine station not able to care for all the Porto Rican 

I refugees. Asks authorization to care for surplus 


during detention. 

Political affairs. Transmits Mr. Arredondo's letter 
of June 28, and requests report. 

Same subject. Requests full information regarding 
firing on launch of u . S, Navy by Carranzasoldiers. 
Seizure and confiscation of American properties. 
No results from numerous representations except 
promised investimtions. Little control 6xer(?ised 
over some State Governments and northern army 
officers. 

Withdrawal of Americans from Mexioo. Author- 
ized to care for surplus refugees. 






Subject 


No. 

Prom and to whom 

Date 


Mr Dawson to Mr. Lan- 
sing (telegram). 

Mr. Lansing to Mr Baker.. 

1916 

July 2 

July 3 


Mr Arredondo to Mr. Lan- 
smg. 

July 4 


Mr Lansing to Mr. Daw- 
son (telegram) , 

July 6 


Mr. Ingraham to Mr. Lan- 
smg 

—.do 


Mr. Lansing to Mr. Arre- 
dondo. 

July 7 


Mr Garrett to Mr. Lan- 
sing (telegram). 

-do—- 


Mr. Polk to Mr. Rodgers 
(telegram). 

—do 

34 

Mr, Polk to Mr. Dawson- - 

—do— 


Mr Dawson to Mr Lan- 
sing (telegram). 

...do 


Mr. Arredondo to Mr. 
Lansing. 

July 12 

196 

Mr. Polk to Mr. Rodgers 
(telegrams). 

...do 


193 

Same to same (telegram) . . . 

—do 

200 

Same to same (telegram) ... 

July 13 


Sametosaruft _ . _ 

...do..... 

218 

Mr, Rodgers to Mr. Lan- 
sing (telegram). 

...do 


Mr. Polk to Mr. Canada 
(telegram). 

—.do 

202 

Mr. Garrett to Mr, Lan- 
sing (telegram). 

Mr, Polk to Mr. Rodgers 
(telegrams). 

—.do 

July 14 

205 

Same to same-- 

...do..... 

209 


—do. 

do.— — 

Act of Congress- 


Mr. Polk to Mr, Rodgers— 

July 16 

222 

Mr. Rodgers to Mr. Lan- 
sing (tdegram). 

— do— 



# 


Page 


Political affairs. Reply to Bopartment’s July 1, 
1 p.m. 

W ithdrawal of Americans from M exico The trans- 
port will be required to convey 200 Porto Ricans 
to their homes. 

Political affairs. Note regarding adjustment of 
difficulties between the United States and Mcvico 
through the mediation of ccitain Latin- American 


598 
702 

599 


countries. 

Withdrawal of Americans fiom Mexico. Request 
authorities take steps to safeguard lives of persons 
reported hiding in mountains in vicinity of 
Cnamal. Same to American Consul, Brownsville, 
Tex 

Same subject Unless otherwise notified, the 
Sumner will be returned to Newport News, after 
disembarking the Porto Rican refugees at San 
Juan, P R. 

Political affairs Reply to the note of July 4, 1915, 
from the de facto Government. The Govornraent 
of the United States is prepared immediately to 
exchange views 

Same subject. Additional evidence that the de la 
Rosa gang was recruited and commanded by 
Oananza officers. 

Protection of Americans and American interests. 

Request de facto Government to issue orders for 
protection of property of A. R. Downs in Guadala* 
jora and near Manzanillo. 

Same subject . Department's response to the Amer- 
ican citizens at Tampico who addressed a memorial 
to the President relative to certain Mexican 
decrees affecting property rights. 

Withdrawal of Americans from Mexico Approxi- 
mately 90 Amoncans m Chomal t'olony, fully 
advised of conditions, have decided to remain 
prefeinng to take diances rather than abandon 
them propel ty 

Political affairs. Mexican reply to American note 
of July 7, 1916. Proposition to appoint a joint 
commission to settle the difforoncos between tho 
two Govemmente 

Piotection of Americans and Amoricun interests. 
Request Juarez authorities be instructed to in- 
vestigate and cause the return of horses which are 
now being detained by Mexic^in authorities at 
San Ygnacio. 

Seizure and confiscation of American projierties. 
Request authonlies to return money taken from 
Mr, Blankenship 

Political affairs. Informs of tho proposals contained 
in Mexican note of July 12, 

Same subject. Gives details of an attack on Ameri- 
can naval forces at Mazatlan. Instructs to insist 
on adequate punishment of those respon.sihlc. 

Seizure and confiscation of American properties. 
Officials more disposed to affqrd proK^ction to 
American interests. 

Withdrawal of Americans from Mexico. Gives 
certain instructions concerning expenditures to 
be made for relief of destitute Americans. 

Same subject. Ohamal colonists m mountain ask 
Department's aid in getting them out. 

Seizure and confiscation of American projicrtifts. 
Request that Governor of Sonora be ordered to 
state immediately grounds for his action against 
the Richardson Construction Co. 

Same subject. Request authorities to return to the 
agents of the Richardson Construction Co, prop- 
erty t^en from its promises near Guayamas. 

Same subject. If report is true that Bablcora Ranch, 
Chihuahua, has been seized by the de facto Govern- 
ment, lodge protest and ask for rolooso of property. 

Withdrawal of Americans from Mexico, An act 
of Congress for relief of Americans in Mexico, 

Political affairs. Corrected report of tho Mazatlan 
incident. 

Protection of American mining interests* Secured 
extension of time for payment taxes current tercio 
without penalty unta Sept. 1. Informed no 
action in relation to confiscation, fines or other 
penalties for nonpayment taxes last terdo bad 
been ordered. 


702 


702 

600 

600 

072 

672 

703 


601 


673 


783 

601 

602 

783 

703 

rm 

783 

784 
784 

704 

m 

m 



From and to whom 


Snhject 


Page 


Mr. Polk to Mr. Eodgers-. July 17 
212 Same to same (telegram) do 


Mr. Polk to Mr. Garrett „-do ' 

(telegram). 

229 Mr. Kodgers to Mr, Lan- My 19 
sing (telegram). 

220 Mr. Polk to Mr. Rodgers do 


222 Same to same (telegram)... July 20 

Mr, Jusserand to Mr. Lan- ...do 

sing. 


223 Mr. Polk to Mr. Rodgers. .L-do 


224 Same to same (telegram)... ...do 


Mr. Polk to Mr, McAdoo.J July 21 


229 Mr. Rodgers to Mr. Lan- ...do 

sing (telegram). 


238 Mr. Polk to Mr. Rodgers.. July 22 


237 Same to same —.do. 


233 Same tosam6(tdegram),..— .do 


Mr, Garrett to Mr. Lan- ...do. 
sing (telegram). 

Mr. Polk to Mr. Arredondo. July 


249 Mr. Polk to Mr, Rodgers ...do. 
(telegram). 


248 Same to same (telegram)...— .do 


126 Mr. Rodgers to Mr. Lan- ...do- 
sing. 


247 Same to same (telegram)... July 


Political affairs. Incloses copy of Mr. Brown's re- 
port on the Mazatlan affair. 

Protection of Americans and Amencan mterests. 
Authorities of Villahermosa and Prontera are re- 
ported to have seized various tugs, boats and 
barges belonging Frontera Navigation Company. 
Request orders be issued to release property. 

Withdrawal of Americans from Mexico. Ihiraish 
destitute Ameucans at Chamal, transportation in 
accordance with Department's July 13, 1916. 

Pobtical affairs. Foreign Office aimously awaiting 
Amencan reply to conference proposal. 

Seizure and confiscation of Amencan properties. 
Ask adequate protection for plantations, Buena 
Ventura, Las Palmas and La Junta, at Clascajal, 
Vera Ciuz. 

Political affairs. President deems it highly im- 
portant that the scope of the inquiry be broadened. 

Financial affairs. French Government seeks the 
assistance of the American Government in pre- 
venting the Mexican Government from carrying 
into effect the threat to lay a heavy monthly tax 
m gold on the National of Mexico. 

Seizure and confiscation of American properties. 
Inform de facto Government that this (Sovem- 
ment expects disavowal of the numerous acts of 
depredation against Amencan property, immedi- 
ate restoration where property stills exists, ade- 
quate compensation for property destroyed, and 
punishment of responsible persons. 

Protection of Amencan mining interests. Acknowl- 
edges receipt of telegram 222. It is reported that 
Department of Hacienda denies extension of time 
for payment taxes without penalty. Ask that 
Department of Hacienda be advised, 

Embargo on the exportation of arms. Requests 
that collectors of customs along the Mexican 
border be instructed to permit aU articles to cross 
the border to Mexico, except munitions and 
mateiials and machinery for the manufacture of 
munitions of war. 

Protection of American mining interests. Reply to 
Department's 224, July 20, 6 p. m. Order to be 
issued extending time payment without penalty 
mining taxes current tercio until Sept. 1. 

Seizure and confiscation of American properties. Re- 
quest the return of all American property confis- 
cated in the State of Durango Ask to be advised 
what action the Government intends to take to 
have such depredations discontinued. 

Same subject. Ask authorities to order the restora- 
tion of dll American property taken in the Yaqui 
Valley and that it be given adequate protection. 

Protection of American mining interests. Request 
that officials in different mining sections be notified 
of action of Secretary of Treasury m grantmg ex- 
tension until Sept. 1 payment of mining taxes with- 
out penalty 

W ithdrawal of Americans from Mexico Messenger 
sent to bring out Chamal colonists hldmg in moun- 
tains. 

Political affairs. American reply to Mexican pro- 
pose for a^pomtment^oU joi n^^m m^ion^ su^ 

Same subject. licply to Mexican note of July 3^ 
given to Mr. Arredondo to-day. Explain to For- 
eign Office that the President hopes that the Mexi- 
can Government will see its way dear to accepting 
our suggestion. 

Financial affialrs. Ascertain whether Mexican Gov- 
ernment threatens to place heavy monthly tax in 
gold on National Bank of Mexico, 

Withdrawal of Americans from Mexico. Denies on 
behalf of Mr, Parker and himself that any ** orders ** 
were ever issued to Americans to leave Mexico. 
Merely advised. 


Political affairs. Foreign Office pleaded with note 
sent in reply to Mexican note of July 12. Matter 
of widening of scope of Inquiry to be presented to 
Carranw at once for speedy reply. 


603 

673 

704 

603 

784 

603 

635 

784 

726 

792 

726 

786 

786 

726 

704 

604 

604 

636 
704 

605 








LXIV 


LIST 01* PAPERS 


MEXICO—Continued 


No. 

From and to \7liom 

Date 

Subject 

Page 

250 

Same to same (telegiam) 

1916 

July 31 

Financial affairs Answer to Department's 248, July 
28, 4 p ni Enforcement of jiaymont of extra tiues 
tempoianly suspended. C^impromiso somewhat 
satisfactoiy to all banks will be effected soon. 

G36 

260 

Mr Polk to Mr Rodgers 
(telegram). 

Aug. 1 

Political affairs. Assure Mexican Government that 
this Govemmout has no intention of allowing <iucs- 
tion of cession of Mexican territory or that of pecu- 
niary claims against Mexico to come before the 
commission. 

605 

263 

Same to same (telegram)... 

Aug. 2 

Financial affairs Continue to oxcriaso best efforts 
in behalf American interests in financial institu- 
tions m Mexico 

630 


Mr AriedondotoMi.Polk- 

Aug 4 

Political affairs Designation of Mexican eommis- 

606 


Mr. Polk to Mr. Jusseiand. 

...do 

SlOIlOlS 

Financial affaiis. Reply to note from French Em- 
bassy, July 20, I91t> Knlorcement of payment of 
extra taxes teinporanly siwpendoU. Compraini.so 
somewhat satisfactory to all banks to be effected lu 
near future. 

637 


Mr, Latehfoid to Mr Lan* 
sing 

Aug. 7 

Einbuigo on the c.\portation of arms. Uovie\\s the 
policy of the United Mtates Government in doaluiK 
with the shipments of arms and munitions into 
Mexico. 

793 


Mr Lansmg to Mr Rodg- 
ers 

...do 

Withdrawal of .imoricans from Mexico. Acknowl- 
edges dispatch No. 120, July 2S, 1916. 

705 

278 

Mr Rodgers to Mr. Lan- 
smg (telegram). 

Aug. 10 

Protection of Amenean oil interests Tlave filed 
piotcst against the ordiT to notaries which provides 
that m formation of new corporations foi explora- 
tion and exploitation of oil lands, chat ter shall con- 
tain clause providing that foreign .stockholders 
shall renounce their national riglits as to coniiiuay 
affairs 

Protection of American mining inti'rests. ('hiof Ad- 
ministrator, stamp office, N ogales, refuses to ueeept 
payment from Arisona-Mcxieo I ^and < ,io. of eurnmt 
taxes except upon repayment of taxes paid May- 
toreua. Rcfiuest orders bo i.ssued for acceptance 
current taxes without reforenoo to past taxes. 

771 

287 

Mr. Lansmg to Mr. Rodg- 
ers (telegram). 

Aug. 12 

726 

293 

Same to same (telegram) 

Aug. 15 

PoliUend affairs. Gives reason for delay in appoint- 
mg the Amoricun commissioners, 

606 

2448 

General Funston to Mr. 
Baker (telegram). 

...do 

Samo subject. Htatos that the outlaws capture<i iu 
the Columbus raid and turned over to Gcncml 
Gavira on his demand have been granted ainruwty 
by the Cananzu eoininaiKler, Colonel Diur.. 

606 


Mr. Lansing to Mr. Arre- 
dondo. 

Aug. 16 

Samo subject. General Tershing's dental of the 
charge that American troops were committing out- 
rages m Mexico. 

607 

295 

Mr Lansing to Mr, Rodg- 
ers (telegram). 

...do 

Protection of American oil interests. Y our 278, A u- 
gust 10, 11 a. m. Decree referred to can not hoTo- 
gnrdod by the United Htates (Jovemmont as an- 
nulling the relations existing hetweou Itself and Ite 
citixens who may own stiKtk in sm*h uorporatton. 

772 

144 

Mr. Rodgers to Mr. Lan- 
sing. 

-,.do — 

Protection of American mining interests. Forwards 
a copy of a formal prote.st, pn^euietl to the Hecre- 
tary of Foreign Affairs, iu the matter of forfeiture of 
any mining lan<l Iciuses for failure to pay tho taxes 
corresponding to the tercio which ended Feb, 29, 
1016. 

Soisuro and confiscation of American properties. 1 n- 
struciions have boon issued to takf^ possession of all 
nuts on the river San Antonio, < ’oahuUa. Request ! 
that, If compatible with Mexican law, orders he 
issued for relief of Mr. Woodward. 

726 

303 

Mr. Lansmg to Mr, Rodg- 
ers (telegram). 

Aug. 18 

7H5 

294 

Mr. Rodgers to Mr. Lan- 
sing (telegram). 

Aug. 19 

Protection of American oil Interests. DopHrtmciit's 
295, Aug. 1C, 6 p. m. Had already made such rep- ; 
resentation, and furthermore have fonnaJly pro* ’ 
tested against decree of Aug. 15. 

772 

307 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

....do 

Protection of American mining Interesta. Heqaest 
suspension paymeot mining taxes be extended CO 
days from Sept. 1 without fines or penalties. Ask 
that instructions be issuoil to State Qoveniinonls 
not to exercise pressure upon American mining 


301 

Mr, Rodgers to Mr, Lan- 
sing (telegram). 

Aug. 21 

ooinpanios to begin operations. 

Same subject. Depariment's 307, Aug, 19, noon. 
Cabrera to-day instructed State Governments to 
desist from action seeking to compel operation 
mines before transportation can be guaranteod. 
Promises consideration in the matter of extension 
of time for payment of taxes last t^o without 
penalty. 

m 


UST OF PAPERS 


LXT 


ME XIC 0— Oontinued 


No. 

From and to whom 

Date 

311 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

1916 

Aug. 22 

308 

Mr Rodgers to Mr. Lan- 
sing (telegram). 

Aug 23 

316 

Mr. Lansing to Mr. Rodg- 
ers (telegram). 

—do. 


Mr. Lansing to Mr. Neale.. 

—.do 

314 

Mr Rodgers to Mr. Lan- 
sing (telegram). 

Aug. 24 


Mr. Cobb to Mr. Lansing 

Aug 25 


President Wilson to Mr. 
Lone. 

Aug. 31 

1972 

Mr Cobb to Mr. Lansing 
(telegram). 

Mr. Lansing to Mr Parker. 

Sept 1 

...do 

374 

Ml Paiker to Mr. Lansing 
(telegram) 

Sept. 4 

506 

Same to same- 

Sept. 5 

Sept 6 

Sept. 7 

—do 

379 

Mr, Lane to Mr. Lansing 
(telegram). 

Mr. Hanna to Mr. Lansing 
(telegram). 

Mr. Parker to Mr. Lansing 
(telegrams). 

380 

Sametosame^^ 

--do 

382 

Same to same. 

_.do 

Mr Cobb to Mr. Polk 

Sept, 9 

388 

Mr, Parker to Mr. Lansing 
(telegram). 

Sept. 10 


Mr. Jusserand to Mr. Lan- 
sing. 

Sept. 11 


Mr. Lansing to Mr. Blocker 
(telegram). 

L„do. 

1763 

Mr. Blocker to Mr. Lansing 
! (telegram). 

Mr. Lansing to Mr. Jusse- 
rand. 

Sept. 12 

Sept. 16 

401 

402 

Mr- Parker to Mr. Lan- 
sing (telegram). 

Same to same (telegram)... 

Sept, 17 

Sept. 18 


Subject 


Page 


Protection of American oil interests Y our 294, Aug 
19, 4 pm. Make representations as instructed 
Department’s 295, advising authorities that you 
are acting under specific instructions from this 
Government 

Protection of American mining interests. Mining 
companies which can not prove absolute financial 
inability through various causes attributable di- 
rectly to failure de facto Government to protect 
Will do wisely to pay taxes last tercio before Sept. 1. 

Same subject As mining companies must know 
by Saturday next whether extension will be 
granted to pay last terclo’s taxes, renew your ef- 
forts to obtain extension and telegraph result not 
later than Friday mght. 

Same subject. Advises him of contents of Mr. Rod- 
ger’s telegram No. 301. 

Same subject. No extension of time for payment 
without penalty mining tares last tercio will b© 
granted. 

Protection of Americans and American interests. 
Gen Luis Herrera has started a few men to work 
in Jesus Maria Mine Company advised to com- 
municate direct with Department. 

Political affairs Authorizes Mr. Lane to act as a 
member of the American-Mexican Joint Com- 
mission. Same to Messrs. Gray and Mott. 

Same subject Villa reported to have defeated Car- 
rancistas at Satevo and Santa Ysabel 

Protection of American mining interests. Approves 
action taken by Mr. Rodgers as reported in his 144. 

Protection of American oil interests. Department 
of Hacienda publishes a decree dated Sept. 2 requir- 
ing all oil companies already producing to register 
in the tax bureau before Sept. 15 and within 16 
days from the date of first production for the com- 
panies which have not yet produced oil. 

Same subject. Transmits text of decree dated Sept. 
2, 1916, requinng the registration of all off com- 


772 


729 


729 


729 

730 

673 


607 


730 

772 


773 


panies 

Political affairs. Meeting of the joint commission- - 


608 


Same subject. De la Rosa reported still at liberty in 
Monterey. 

Protection of Amoncans and Amencan interests. 
Department’s H4j June 1, 4 p. m., to Rodgers. 
Troops now distributed places mentioned guar- 
anteeing protection American hves and property. 

Seizure and confiscation of American properties. 
Reply to Department’s 163 of Juno 21, 3 p. m., to 
Rodgers. Foreign Oflice denies allegations. 

Same subject. Reply to Department’s 220 of July 
19, 6 p m , to Rodgers. Foreign Ofidoo promises 
protection to properties mentioned. 

Protection of Americans and Amencan interests. 
Further report concerning the working of the 
American-owned Jesus Maria Mine by General 
Herrera. 

Financial affairs. Demand for specie payment of 
some 200,000 pesos In their respective issue of 
bank notes at par is said to have been made on the 
Banco NacionaJ and Banco X^ndres y Mexico. 

Same subject. Requests good ofiQlces of American 
Government to prevent violent measures being 
taken against the Bank of London and Mexico. 

Seizure and confiscation of American properties 
Informs that Foreign Ofidee denies com^oation 
property on American ranchos along border. 

Same subject. Reply to Department’s Sept. 11, 
1916, 4 p. m. Confiscation order revoked. 

Financial affairs. Reply to the note of the French 
Embassy dated Sept, 11, 1916. Matter of redemjp- 
tion of bank notes in coin has been brought to the 
attention of American commissioners at New Lon- 
don. 

Protection of American mining interests. Mining 
de<7ee dated Sept. 14. 

Financial affairs. Decree published canceling the 
right of banks of issue to 6zmt bank notes and 
ordering them within 60 days to cover the entire 
amount of their issues with metallic reserves. 


609 

673 

786 

786 

674 

637 


780 

786 

639 


730 


106413*— S' B 1916 6 




LXVI 


LUST OF PAPEBS 


ME XI 0 0 —Continued 


No. 

From and to whom 

Date 


Mr. Jusserand to Mr. Lan- 
sing 

1916 

Sept. 18 

423 

Mr. Lansing to Mr. Parker 
(telegram) 

...do 


519 

Mr. Lansing to Mr. Hanna 
(telegram). 

Mr. Parker to Mr. Lan- 
sing. 

Sept. 19 

.—do 

2918 

General Funston to Mr. 

Baker (telegrams). 

Mr. Canada to Mr. Lan- 
sing (telegram). 

ftfiTtiA tn so-mfi _ 

Sept. 20 

—do 

...do 

408 

Mr. Parker to Mr, Lansing 
(telegram). 

—do 

430 

Mr. Lansing to Mr Parker 
(tdegram). 

do 

428 

Same to same (telegram).,. 

— do 

416 

Mr. Parker to Mr. Lansing 
(telegram). 

Sept. 22 

441 

Mr. Lansing to Mr. Parker 
(telegram). 

Sept. 23 

2984 

General Funston to Mr. 

Baker (telegran:0> 

Mr. Lansing to Mr, Jus- 
serand. 

Sept. 25 

do— 




Mr. Siller to Mr. Lansing.. 

Sept. 26 

630 

Mr. Parker to Mr. Lansing. 

Sept. 27 

436 

Same to same (telegrams).. 

Sept. 28 

453 

Same to same . ^ ^ ^ ^ 

Oct. 6 

Oct. 7 

459 

Same to same 

478 

Mr. Polk to Mr, Parker 
(telegram). 

Oct, 11 

484 

Mr. Lansing to Mr. Parker 
(telegram). 

Oct, 12 

481 

Mr. Parker to Mr. Lansing. 

—do. 


Mr. Lansing to Mr. Long 
(telegram). 

— do 


Subject 


PURP 


Same subject Asks that American delegates at the 
New London conference impress upon Mexican 
Minister the injunous effects coitaiii acts against 
the Bank of London and Mexico and the Nat.iontd 
Bank are likely to have upon the credit of Mexico. 

Protection of American mining interests. Boport 
whether recent Cananza decree reciuircs repay- 
ment of taxes paid Villa in territory controlled by 
Villa faction. Forward copy of deci oo if lasued. 

Political affairs. Asks whether do la Rosa was over 
brought to him for identification. 

Protection of American mining interests. Trans- 
mits copies and translation of the decree dated 
Sept. 14, relative to the operation of mines in 
Mexico. 

Political affairs. Account of Villa’s attack on Chi- 
huahua. 

Financial affairs. Banks given fiO days by decree of 
of Sept. 16 to cover their bills with metallic reserves. 

Same subject. Incloses a translation of recent bank 
decree. 

Same subject. Banco Nacional and Banco Londros 
y Mexico wore forced to iiay 400,000 pesos in specie 
montionod m tolegrum ;>8vS, Sept. ID, 10 p. m. 

Seizure and confiscation of Americau proportic.H. 
American properties at Salina Cruz ogam raided. 
Urge upon the authoiities the necessity of prompt 


action. 

Protection of American mining interests. Forward 
Immediately translation of decree mentioned in 
tdegram 401. 

Same subject. Reply to Department’s 423 Sept. 18, 
6 p. m. Decree dated June 19, 1916, provides that 
taxes paid to protended forces are considered paid. 
Bear taxes should be paid within a month from 
occupation thereafter with penalties. Am making 
investigation for a more recent decree. 

Same subject American mining companies give 
reasons why the decree of Sept. 14 can not be com- 
plied with. Seek annulment of decree. 

Political affairs. Further report of Villa’s attack on 
Chihuahua. 

Financial affairs. Acknowledges receipt of note of 
French Embassy dated Sept. 38, 1910. Copies of 
note sent to American commissioners at Now 
London. 

Political affanrs. The de facto Government’s ver- 
sion of the attack on Chihuahua. 

Protection of American oil interests. In compliance 
with Department's telegraphic instruction No, 
424 of Sept. 18, 7 p. m., transmits official bulletins 
containing the decrees in (mosUon. 

Financial affairs. Confiscation of National Bank 
and Bank of London and Mexico reported. 

Seizure and confiscation of American pronertles. 
Foreign Office denies every statement in Depart- 
ment’s 178, June 29, 4 p. m., to Rodgers. 

Same subject. Reply to Dop^mont's 303, Aug. 18, 
noon to Rodgers. Nuts being harvested by order 
of Department of Fomento. 

Protection of American mlnlDg interests. If any 
American companies can not comply with the de- 
cree on the operation of mines, it would be advisable 
for them to file a statement with the appropriate 
Mexican authorities setting forth why resumption 
of work can not be undertaken at this time. 

Protection of Americans and American intcrestH. 
Request appropriate authorities order work 
stopped at the Jesus Maria Mine. 

Knancial affairs. Memorandum of manager of 
Bank of London and Mexico on the onforoement 
of decree of Sept. 15, 

Embargo on the exportation of arms. The United 
States would oonrtdor it a very friendly act if the 
Salvadorean Government would prevent the shli>- 
ment of munitions of war to Mexico, pendlngretum 
of more normal cooditions. 


010 


731 


(UKl 

731 


OOil 

m 


f.41 


(»t3 


787 


733 

733 


734 

m 

643 


010 

773 


043 

7rt7 

787 

734 


484 

044 

704 



UST OF PAPERS 


ixsvn 


MEXICO— Oontnra^d 


No. 


From and to whom 


479 


Mr Lansing to Mr. Farter 
(telegram). 


Mr. Cohb to Mr I^ansing 
(telegram) 

Mr. Lansmg to Mr. Gatlin 
(telegram). 


Mr. Polt to Mr. I^aveU 
(telegram). 


d02 


Mr. Parker to Mr. Lansing J 


504 


Mr. Polk to Mr. Parker 
(telegram). 


661 


Mr. Parker to Mr. Lansing. 


Mr. Dawson to Mr. Lan- 
sing (telegram). 

3447 General Punston to Mr. 

Baker (telegrams). 

3456 Same to same 


611 


Mr. Lansing to Mr. Parker 
(telegram). 


521 


Mr. Parker to Mr. Lansing 
(telegram). 


527 


Same to same 


618 


Mr. Lansing to Mr. Parker 
(telegram). 


545 


General Pershing to Gen- 
eral Funston. 

Mr. Parker to Ml. Lansing 
(telegram). 


531 


Mr. Polk to Mr. Parker 
(telegram). 


Mr. Polk to Mr. Blocker 
(telegram). 


530 


Mr* Osbomo to Mr. Parker 
(telegrams). 


536 


Same to same. 


Date 


Subject 


1916 
Oct, 12 


Oct. 14 
.._do 

Oct. 19 


Oct. 20 
...do 

...do 

Oct 24 

...do 

Oct. 25 
...do..... 

Oct. 26 

Oct. 27 
Oct. 30 

Nov. 2 
Nov, 4 


Nov. 6 


L.do„..J 


Nov, 7 
...do 


Protection of American mining interests. Inform 
appropriate authorities that on account of recent 
burning of mine headframe and lack of supplies 
owners of Nueva Luz mine at Guanajuato as- 
sert that they are unable to resume operations 
at present Request that this be considered 
sufficient reason why mme can not resume work 
immediately 

Protection of Americans and American interests. 
Fr^het reports concerning the work of the Jesus 
Maria Mine. 

Protection of American mining interests. Ac- 
knowledges letter of Oct. 10, 1916. Advises com- 
pany to file with proper Mexican authorities a 
statement of reasons why it can not comply with 
mining decree 

Embargo on the exportation of arms. The United 
States would consider it a very friendly act if the 
Guatemalan Government would prevent the 
shipments of munitions of war to Mexico, pend- 
ing the return of more normal conditions. Same 
to Amcncan Legations at Tegutagalpa, Managua, 
San Jose and Habana. 

Seizuic and confiscation of American properties. 
Department’s 430, Sept. 20, 6 p. m. Protection 
afforded properties. 

Protection of American mining interests. Tele- 
graph result representations you were mstructed 
to make in Department’s 441, and continue your 
efforts to obtain annulment of decree- 

Same subject. Transmits a copy of the decree of 
Juno 19, 1916, and translations of corre^ondence 
with the Department of Hacienda relating there- 
to 

Political affairs. Revolutionists becoming more 
active south and west of Tampico 

Same subject. Further confirmation of report that 
Villa defeated Carranza forces at Chihuahua. 

Same subject. Gives towns and territory in control 
of Villa, 

Protection of Americans and American interests. 
Ask authorities to indicate immediately what 
action will be taken to protect Amencau proper- 
ties m Yaqui Valley. 

Same subject. Henera said to have ordered sus- 
pension of work in Jesus Maria Mine immediately 
after fact brought to his attention. 

Financial affairs. Explains the effect of certain 
articles of the decree of Sept. 15, 1916. 

Protection of Americans and American interests. 
Request that situation of Americans at Carmen 
be investigated and that authorities be given 
insti notions to protect them. 

Politick affairs- Carrancistas seem impotent to 
restore anything like peace in Chihuahua. 

Protection of American oil interests. Press pub- 
lishes statement that all permits, laws, decrees, 
leases issued by the State Governments for ex- 
ploitation and trading of minerals, coals and 
bitumen oil are null and void. Presumably 
applies to all acts issued since the establishment 
of the de facto Government. 

Protection of Americans and American inteiests. 
Several Americans in Parral reported to have 
been executed by Villistas. Seek protection for 
those Americans still in Parral or its vicinity. 

Same subject. Inform local authorties in Piedras 
Negras that several Americans in Parral have 
he^ reported executed and request thorn to 
assist in effort to obtain facts- 

Political affairs. tJrgenriyrequest General Carranza 
to afford protection to the lives and interests 
of foreigners in Chihuahua City. 

Protection of American oil interests, Tour 546> 
November 4, 3 p. m. Request authorities to 
furnish you with an official e^y of decree and 'to 
inform, you as to scope and effisot. ' 


735 


674 

735 


795 


787 

736 

736 

611 

611 

612 

676 

676 

645 

675 

612 

775 


676 

676 

614 

776 






Lxvin 


raST OF PAPBBS 


MEXIC 0— Continued 


No. 


541 


548 


550 


Prom and to whom 


Mr. Edwards to Mr. Lan- 
sing (telegram). 


Mr. Lansing to Mr. Cobb 
(telegram). 


Mr. Lansing to Mr. Ed- 
wards (telegram). 


Mr. Lansing to Mr. Parker 
(telegram). 


Mr. Parker to Mr. Lansing 
(telegram) 


Mr. Cobb to Mr. Lansing 
(telegram). 

Mr. Blocker to Mr. Lan- 
sing (telegram). 

Mr. Lansing to Mr. Ed- 
wards (telegram). 

Mr. Blocker to Mr. Lan- 
sing (telegram). 

Mr. Canada to Mr. Lan- 
sing (telegram). 


Mr. Lansing to Mr. Parker 
(telegram). 


Same to same (telegram)-.J 


Mr. Canada to Mr. Lan- 
sing (telegrams). 

Mr. Lansmg to Mr. Hanna 


Mr. Canada to Mr. Lan- 
sing (telegram). 


Mr. Blocker to Mr. Lan- 
sing (telegrams). 

Same to 


Mr. Lansing to the French 
Consol, Mazatlan (tele- 
gram). 


Date 

Subject 

1916 
Nov, 9 

Protection of Chinese interests. Pepcrts fully 200 
Chincso refugees m Juarez from Villa country. 
Number increasing daily Most of them in dc'sti- 
tuto circumstances Suggests financial aid be 
rendered and that imimgration station on the 
American side bo opened to them in case of 
danger. 

...do 

Withdrawal of Americans from Mexico. Inform 
British Consul at Chihuahua City to advise 
Americans to leave, British Embassy wishes 
him to use his best judgment m advising British 
subjects 

Nov 10 

Protection of Chinese interests. Department has 
no funds at its disposal that could bo used to 
assist Chinese. Confer with immigration inspec- 
tor, as it is understood that ho has standing in- 
structions regarding refuge. 

...do 

Protection of American mining interests. R<‘pcaf. 
representations concerning mining decree ina«h' 
in accordance with Department's 441, Sepi 23, 

6 p. m. Also state that the United States Cloveni- 
ment can not permit <,he enforcement of the <ie- 
orce to pass without protest, on the ground that 
it IS essentially illegal and conflsentory in ehar- 
acter. 

Nov. 11 

Protection of Americans and American interests 
Acknowledges Department’s rdl, Oct 25, 6 p in. 
State Government denies that tranquility of State 
has been interrupted. No mention of action con- 
templated to protect Ameiioan pr<ipert.y. 

Nov. 13 

Political Affairs. Tension in Ohihuuhua tomno- 
rarily relieved by apparent rotiroment of Villa 
toward Urado lino. 

.— do 

Same subject. General Murguia with 6,000 tn)op.s 
reported moving north of Kscalcn. 

—do. 

Same subject. Obtain information as to truth of 
reported massacre of foreigners at Jirnenoz and 
Santa Bosalia. 

...do 

Same subject. No accurate knowledge c‘onditions 
and events beyond Bermejillo. Reported mass- 
acre of foreigners at Jimenez. 

...do 

Protection of Americans and American interests. 
Some Americans reported killed or Injured on a 
train of the Inter-Oceanic said to have been 
wrecked between Perono and Jalapa on the lUh, 

...do. 

Same subject. Request authorities to onier Imino- 
diate return to American settlers at EspenmrAi and 
vicinity all arms and ammunition taken from t hem 
In June. 

Nov. 14 

Same subject. Point out to Foreign OfUce that it 
has failed to reply to Department’s request afl to 
what action was to bo taken to protect Ainorictan 
properties in the Yaqui Valley. In view of depre- 
dations upon American property request Foreign 
Office to explain how it can ne said tnat there haa 
been unintorrupted tranquility in the State of 
Sonora. 

...do 

Same subject. Gives names of throe of the victims 
of the Inter-Oceanic Railway accident, 

—do. 

Protection of American mining int crests. Slat f<*r 
the information and guidance of Ainericim consu- 
lar officers, the action taken by the Department 
with reference to the decree requiring Amnricrtn 
mine owners to resume oi>eratlon of their prop- 
erties. 

Nov. 16 

Protection of Americans and American interests. 
No American causalties Inter-Ocoanlc accident 
except those mentioned in telegram of No, i4, 6 
p. m. 

Political affairs. Villlstos reported near Cuatro 
Cienegas. 

...do. 

Nov. 17 

Protection of Americans and American interests. 
Reply to Department’s Nov . 5 p. m. Impresses 
upon Mexican authorities necfeesity of receiving 
definite information of Americans at Parral. 

...do..... 

Withdrawal of Americans from Mexico, Request 
authorities to assist in locating Americans wld to 
have left PamJ for OuJiacan on Nov. 3. 


Page 


795 


707 


797 


737 


070 


614 

015 

016 

010 

070 


077 


077 


077 

737 


077 


016 

677 

707 



LIST OF PAPBES 


LXIX 


MEXIOO— Oontiwxed 


No. 

From and to whom 

Date 


Mr. Lansing to Mr. Daniels 

1916 

Nov. 17 


Mr. Doherty to Mr. Lan- 
sing (telegram). 

Nov. 18 

660 

Mr. Iiansing to Mr. Parker 
(telegram). 

...do 

Nov. 20 


Mr. Lansing to Mr. Doher- 
ty (telegram). 


Mr. Lansing to Mr. Coen 
(telegram). 

Mr. Parker to Mr. Lan- 
sing (telegram). 

..-do- 

676 

Nov. 21 

677 

571 

Mr. Coen to Mr. Lansing 
(telegram). 

Mr. Thurston to Mr. Lan- 
smg (telegram). 

Mr. Polk to Mr. Parker 
(telegram). 

Nov. 22 

Nov. 23 

Nov. 25 


i Mr. Polk to Mr. Thurston 

—do . 

3838 

3839 

(telegram). 

Mr. Blocker to Mr. lea- 
sing (telegram). 

General Funston to Mr. 
Baker (telegrams). 

Same to same 

Mr. Edwards to Mr. Lan- 
sing (telegrams). 

Nov. 30 

Dec. 2 

—do J 

—.do 


Same to same 

Dec. 6 

674 

Mr. Lansing to Mr. Parker 
(telegram). 

—do 


Mr. Edwards to Mr. Lan- 
sing. 

Dec. 6 


Mr. Blocker to Mr, Lan- 

do 


sing (telegram). 


1097 

Ramcii to Ramft _ 

Dec, 7 

3904 

General Funston to Mr. 

Baker (telegram). 

Mr. Lansing to Mr. Block- 
er (telegram). 

Dec. 8 

—do 

600 

Mr. Parker to Mr. Lansing 
(telegram). 

...do. — 

3910 

General Funston to Mr. 
Baker (telegram). 

Dec. 9 


Mr, Blocker to MDr. Lan- 

...do 


sing (telegram). 



Mr. Jusserand to Mr. Lan- 
sing. 

...do..-. 

682 

Mr. Lansing to Mr. Parker 
(telegram). 

Dec. W 


Subject 


Pai;e 


Same subject. Asks that senior naval officer pres- 
ent in Mexican west coast waters be instructed to 
give necessary assistance to several Americans said 
to have left Parral for Cuhacan should they arrive 
at a west coast port. 

Protection of Americans and Amencan interests. 
Four refugees from Parral left Ouliacan to-day for 
Nogales. 

Protection of Amencan mining mterests. Ascertain 
whether report published in American newspapers 
that the mining decree of Sept. 14 has been extend- 
ed until Jan. 14 next, is correct. 

Protection of Americans and Amencan interests, i 
Obtedn from refugees statement concerning condi- I 
tions at Parral and vicinity. I 

Withdrawal of Americans. Advise Americans m 
your district to withdraw from Mexico. 

Protection of American mining interests. Depart- 
ment's 660, Nov. 18, 5 p. m , El Democrata of 16th 
instant published circular of Fomento Department 
extending term until Feb. 14 next for the operation 
of mines. 

Protection of Americans and American interests. 
Describes conditions at Parral. 

Financial affairs. Eeports he has assumed charge. 

Protection of Americans and Amencan interests. 
Renew efforts to obtain definite information re- 
garding wel&re and whereabouts of several Ameri- 
can citizens of Parral beheved to be hiding some 
distance from that place. 

Financial affairs. Action reported in 677 approved 

Pollticid affairs. Villa believed to have captured 

Same subject. Gives details of Villa's attack on 
Chihuahua. 

3am e subject. Capture of Chihuahua by Villistas.. 

Same subject. Carranza troops under General Mur- 

g uia reported to have reached outskirts of Chihua- 
ua and to be now fighting to regain the city. 

Same subject. Confirmation of the safety of all 
foreigners in Chihuahua except Ohmese. 
Protection of American mining interests. Say to 
Carranza that when the decree of May 1 is modi- 
fied so as to put in force the understanding reached 
by the committee of mine owners with Cabrera as 
to export taxes that a modification of the perten- 
encia tax also be incorporated in the same decree. 
Political affairs. Parral is said to be again in the 
hands of Carranza troops and that Americans are 
safe and no property destroyed. 

Protection of Americans and American interests. 
American citizen arriving from Parral gives a 
report of conditions obtalnmg there. 

Political affairs. Encloses manifesto of General Villa 
to the people of Mexico. 

Same subject. Carranza officer rives further infor- 
mation concerning Villa’s attach on Chihuahua. 
Protection of Americans and American interests. 
Continue to seek definite information regarding 
Americans at Parral, Jimenez and Santa Rosalia. 
Protection of American mining interests. First 
Chief requests that the subject matter of Dep^ 
ment’s telegram 674 be taken up through the For^ 
eign Office. 

Political affairs. Activities of VDla. Recommends 
a swift blow be dealt Villlstas by Persblng's own- 
mand. 

Protection of Americans and American interests. 
Acknowledges Department*s December 8. 6 p. m. 
Every effort bemg made to obtain further Informa- 
tion regarding Americans at Parral. 

Financiw affairs. Agrin calls attention to the situ- 
ation in which ie facto Government has placed the 
banks and, in particular the Narional Bank of 
Mexico. Incloses copy of protest of French Gov- 
ernment made to the Minister of Mexico at Paris. 
Protection of American mining interests. Y our 600, 
December 8. Make representations through 
Foreiim Office and request matter be brought to 
attantioQ of Carnoiza, at earliest possible moment. 


707 

678 

738 

678 

708 
738 

678 
645 

679 

645 

616 

617 

618 
618 

619 

738 

619 

679 

619 

622 

679 

740 


646 


740 





LXX 


LIST OOP FAP!EiKS 


MEXIC O— Continued 


No. 

From and to whom 

Date 


Mr. Blocker to Mr. Lan- 
smg (telegram). 

1916 

Dec. 14 


Mr Thnrston to Mr. Lan- 

Dec. 16 


Mr. Bloc^ to^Mr, Lan- 
sing (telegram). 

Dec 19 


Same to same (telegram)— 

Dec. 20 


Mr. Lansing to Mr. Thurs- 
ton (telegrams). 

Dec 22 



,._do 


Mr. Hanna to Mr. Lansmg 
(telegram). 

—do 


Mr. Cobb to Mr. Lansing 
(telegram). 

Mr. Oarothers to Mr. Lan- 
smg (telegram). 

Dec. 23 

Dec. 24 


Mr. Dickinson to Mr. Lan- 
sing (telegram). 

Dec. 25 


Mr. Garrett to Mr. Lan- 
smg (tel^am). 

Dec 26 


Mr. Canada to Mr. Lan- 
smg (telegram) 

—do 


Mr. Blocker to Mr Lan- 
sing (telegram). 

Doc. 27 

642 

Mr ParkertoMr Lansing- 

--do 


Mr. Garrett to Mr. Lan- 
smg (telegram). 

Dec. 28 


Mr Blocker to Mr. Lan- 

do 

622 

smg (telegrams). 

Mr. Parker to Mr. Lansmg 
(telegram). 

— do 




Mr. Jusserand to Mr. Lan- 

-..do..... 


smg 



Mr. Blocker to Mr. Lan- 
smg. 

Deo. 30 


Subject 


Protection of Americans and American interests. 
Statement of Doctor Bernhard concerning con- 
ditions existing m Parral. 

Financial aflairs. Decree concerning banks 

Protection of Americans and Amencan interests. 
Reports arrival of some Americans from Parral 
who give further details of conditions there. 

Political affairs. Consulate is uneasy for safety of 
Americans and other foreigners at Tortcon. 

Protection of Americans and American interests. 
Inquest prompt and adequate measures to safe- 
guard American life and properly In Torreon 
district. 

Same subject. Request that prompt and adequate 
protection be afforded to American life and prop- 
erty m Parral and Magistral districts. 

Withdrawal of Americans. Twenty-four Americans 
and seven British arrived with their families at 
San Luis Potosi. 

Political aifairs. Carranza troops reported to have 
evacuated and Villistas entered Torreon 

Same subject. Capture of Torreon confirmed. Villa 
said to be malntammg oider and affording pro- 
tection to foreigners. 

Protection of Americans and American interests. 
Gives names of Americans arriving from Magistral, 
Durango. 

Political affairs. Rebels crossed the Rio Grande 
below and above Laiedo and burned railroad 
bridge 12 miles south of Nuevo Laredo. 

Same subject. Carranza troops defeated at Snlcdad, 
a town on the Mexican Railroad about 27 miles 
from Vora Cmz. 

Same subject. Torreon garrison falling back along 
Coahuila and Pacific Railway toward Saltillo. 
Oarianza troops apparently demoralized. 

Protection of Americans and American Interests. 
Incloses copies of two notes received from the For- 
eign Offilce In answer to note sent in pursuance of 
Department's 660 of November 14. 

Political affairs. Villistas rapidly gaining in strength 
and activity. Expect soon to control northern 
Mexico. 

Samesubject. Fall of Torreon is conceded 

Protection of Americans and American iutcro.sts. 
Reply to Department's 648, Nov. 1 3, 4 p. m. Com- 
mandant Sonora instructed that if there is no ob- 
jection the arms bo returned to interested porson-s. 

Finan cial affairs. 8ets forth certain transactions and 
negotiations on the part of the de facto Government 
which, it is claimed, invalidate the reasons invoked 
In justification of the decree of Dec. 14. 

Political affairs. Torreon reported to have biKm 
recaptured. 


Pago 


6S0 

G49 

080 

624 

681 

fiSI 

708 

C24 

G24 


681 

624 


f}25 


025 


082 


626 


025 

083 

050 

626 


MOROOOO 


Mr Jusserand to Mr. Lan- 
sing. 

1916 

Jan. 16 

Issuance of exequaturs to American consular officers 
in the French and Spanish zones in Morocco, 
Names officers empowered to issue exequaturs to for- 
eign consuls in the Spanish and French zones and 
to receive letters of credenoe of diplomatio agents 

SOS 

Mr Lansing to Mr. Jusse- 
land. 

Jan. 18 

and consuls general. 

Abrogation of the capitulations in the French zone in 
Morocco The Department can not recognize the 
legality of the decision of the French authorities in 
Morocco that merchandise Imported into Morocco 
must be accompanied by a certificate of origin, 
visaed by a French consular officer. i 

bOO 

Mr, Sharp to Mr. Lansing.. 

Feb, 11 

Frcm* protectorate, etc. Incloses copy of a note from 1 
the French Foreim Office, stating that the order Is - 1 
sued by the Frenw Resident General In M orocoo in 
regard to the tri^ of certain oases by the niilitary 
authorities is of a temporary character while nuir- 
tial law exists In that country. 

8fit 

Mr. Elafio to Mr, Lansing.. 

Feb. 15 

1 

Exequaturs, States that Sultan Muley Yusef has 
provided Prince Muley el MehedI with a general 
power to grant exequaturs to foreign consuls ap- 
pointed in the Spanlsb zone. 

809 





LIST OF PAPERS 


LJCXl 


MORO OCO— Contintied 


From and to whom 

Date 

Subject 

Page 

Mr. Lansing to Mr. Jusse- 

1916 
Mar. S 

Same subject. Acknowledges receipt of note of Jan. 

810 

rand. 

Mr I^ansingtoMr. Riafio_. 

—do 

16, 1916. 

Same subject. Acknowledges receipt of note of Feb . 

810 

Mr. Jussorand to Mr. Lan- 

Apr IT 

15, 1916. 

French protectorate, etc. The Minister for Foreim 
Aiilairs points out that the rules issued by toe 
French Resident General in Morocco concerning 
the importations of merchandise into that country 
are intended to prevent Germany from importing 
into Morocco German goods He would also appre- 
ciate an early settlement of the capitulations ques- 
tions. 

Same subject. Submits a list of questions which 

802 

sing. 

Mr Lansing to Mr. Jusse- 

July 1 

803 

rand. 

Mr. Lansing to Mr. Blake 
(telegram) 

Mr. Jusserand to Mr. Lan- 

July 5 

would have to be considered in connection with the 
capitulations matter. 

Same subject. Advises him of above note 

806 

July 31 

Same subject. Incloses copy of the declaration 

805 

sing. < 

Mr Polk to Mr. Blako 

Aug. 3 

signed by other powers m regard to the abrogation 
of the capitulations. 

Same subject. Quotes above declaration and re- 

806 

(telegram). 

Mr. Lansing to Mr. Blske-^ 

Aug. 8 

quests views. 

Same subject. Incloses copy of Department's note 

806 

Mr. Blako to Mr. I^nsing 

—do 

to the French Ambassador of July 1, 1916. 

Same subject. Makes suggestions in regard to the 

806 

(telegram) 

Mr. Jusserand to Mr. Lan- ! 

Aug. 26 

abrogation of the capitulations in the French zone 
of Morocco. 

Same subject. The French Government is ready to 

807 

sing. 

Same to same 

Oct. 3 

sign a treaty concerning the abrogation of the capti- 
ulations in the French zone of Morocco 

Same subject. Incloses list of notes his Govern- 


Mr. Lansmg to Mr. Jusse- 

Oct 12 

ment is ready to sign in connection with a treaty 
for the abrogation of the capitulations m the French 
zone of Morocco. 

Same subject. The views of this Government will 

808 

rand. 

1 

j 


be communicated to him as soon as his note of Oct. 
3, 1916, concerning the abrogation of the capitula- 
tions in the French zone of Morocco, can be con- 
sidered by the Department. 



NICARAGUA 


Mr. Quesado to Mr. Lan- 

1910 

Feb, 2 

Canal treaty. Asks that steps be taken to prevent 

811 

sing. 


the consummation of Intoroceanic Canal Treaty be- 
tween the United States and Nicaragua. 


Mr. Betancourt to Mr. 

: Fab. 0 

Same subject Incloses copy of award made by Pres- 

813 

Lansing. 

1 

ident Of Franco m the arbitration whose object was 



to define boundary between Vice Kingdom of New 
Granada and the Oaptaincy General of Guatemala. 


Mr. Quesada to Mr. Lan- 

Fob. 8 

Same subject. Incloses copy of protest made by Loga- 

814 

sing. 


tion against ratification of tho CharaorrchBryan 
Treaty. 


Mr. Zaldivar to Mr. Lan- 

Feb. 9 

Same subject. Presents statement from his Govern- 

814 

sing. 


mont In regard to the treaty between the United 
States and Nicaragua. 


Mr. Quesada to Mr. Lan- 

Feb. 21 

Same subject. Bntors formal protest against ratlfi- 

818 

sing. 

Mr. Lansing to Mr. Oha- 

Feb. 34 

cation of treaty by the Senate. 

Same subject. Advises him of ratification of treaty 

819 

morro. 


by Senate. 


Mr, Chamorro to Mr. Lan- 
sing. 

Feb, 28 

Same subject. Nicaraguan Government accepts 
treaty as amended by Senate and will submit it to 

819 


Nicaraguan Senate for ratification. 


Mr. Lansing to Mr. Quo- 

j Mar. 1 

( Same subject. Acknowledges receipt of the Legation's 

820 

sada. 


; various notes and says he fails to perceive wherein 
the treaty just ratified would adversely affect -Costa 
Rica. 

Same subject. Requests that American Govern- 


Mr. Chamorro to Mr. Lan- 

Mar. 6 

822 

sing. 


ment give interpretation of treaty as ratified by 
American Senate. 

824 

Mr. Lansing to Mr. Cha- 

Mar. 11 

Same subject. American Government interprets 

morro 


treaty as giving the United States an option. 

Same subject. States reasons why Salvador should 
not bo disturbed over the canal convention entered 


Mr. Lansing to Mr. Zaldi- 

Mar. 18 

824 

var. 


Mr. I/ong to Mr. Lansing 
(tOlegram). 

Mar. 26 

into betwem the United States and Nicaragua, 
Same sabject. Costa Rica arraigns Nicaragua be- 
fore the court at Cartage In connection with Nica- 

826 


raguan treaty. 


Mr. Oreamuno to Mr. 

Mar. 27 

Same subject. Advises that the Government of 

820 

I^ansing. 


Costa Rica has brought suit against the Govern- 
ment of Nicaragua. 1 












\jjc jrAirx:ji\o 


NIGARAQTJ A— Continued 


From and to whom 

Date 

Mr. Lansing to Mr. Hale 
(telegram). 

Mr. Zaldivar to Mr Lan- 
sing. 

1916 
Mar 27 

Mar. 28 

Mr. Lansing to Mr Jeffer- 
son (telcgiam) 

Ml Lansing to Mr. Long 
(telegi am) 

Mar. 30 

--do 

Mr Jefferson to Mr. Lan- 
sing (telegram) 

Mar 31 

Same to same (telegrams)-. 

Apr, 7 

do 

Apr. 11 

...do 

Mr. Lansing to Mr. Betan- 
court. 


Mr. Spring Rice to Mr. 
Lansing. 

Apr. 12 

Mr Chamorro to Mr Lan- 
sing. 

Mr Lansjing to Mr. Jeffer- 
son (telegram). 

Mr. Lansing to Mr. Cha- 
morro, 

Apr. 13 

Apr. 14 

Apr. 17 

Mr, Lansing to Mr. Thom- 
son. 

Apr. 18 

Mr, J'efferson to Mr, Lan- 
sing (telegram). 

Mr. Lansing to Mr. Spring 
Rice. 

May 4 

May 6 

Mr. Spring Rice to Mr. 
Lansmg 

i 

May 21 

Mr. Polk to Mr. Quosada— 

MAy 22 

Mr. Quesada to Mr. Lan- 
sing. 

May 23 

Mr. Zavela to Mr. Lansing- 

June 13 

Mr. Jefferson to Mr. Lan- 
sing. 

June 17 

Mr. Quesada to Mr. Lan- 
sing. 

June 20 

Mr. Lsusing to Mr. Zavela . 

June 21 

Mr. Lansing to Mr. Jeffer- 
son (telegram). 

June 22 

June 24 

July 17 

Mr. Cnadra Z, to Mr. Lan- 
sing. 


Subject 


Same subject. Report present status of suit brought 
atroinstNicarngun and deielopmcntsastbej occur. 

Same subject Incloses copy of note from Minisf cr of 
Foreign Relations m i cpJi to communication fioin 
American Ohaige mfoiming Salvadorean Govern- 
ment of ratification by American Senate of Canal 
Treaty. 

Same subject. Reports status of Canal Treaty before 
the Nicaraguan Oongicss 

Same subject Department views attempt of Costa 
Rica to mtoifoie m freedom of action of Nicaragua 
as unjustifiable effort to pre^ent Nicaragua from 
fulfilling her contractual obligations. 

Same subject. Department's M ar. 30, 4 p. m. Text 
of Canal Convention amendments have been trans- 
mitted to President, who recommends its passage. 

Same subject. Nicai agiian Senate passes treaty and 
transmits it to House 

Same subject. Treaty and^amendmonts ratified by 
Nicaraguan Congress exactly as passed by United 
States Senate. 

Same subject. Replies to the Minister’s Fob. fi and 
says that the matter is one for discussion primarily 
between the Colombian Government and the 
Nicaraguan Government. 

Same subject Reference the Ambassador’s note of 
Oct 28, 1915, states that list of British climns 
against Nicaraguan Government are in cmirso 
of preparation and will bo commuiiicatod us soon 
as received. 

Same subject. Reports final approval of tieaty by 
Nicaraguan Congress 

Same subject. Department gratified to learn of rati- 
fication of treaty. 

Same subject. Acknowledges the M mister's Apr, 13 
and says he will be happy to fix date for olTooting 
exchange of instruments of ratification as soon as 
convenient to the fonnor. 

Same subject. Incloses for files of mission copies of 
eorrespomienco between Minister of Colombia and 
the Department in regard to treaty. 

Same subject. Salvador and Costa Rica continue 
strong protest. 

Same subject. Acknowledges the Ambassador’s 
Apr. 12 and says that Department awaits list of 
claims raontionod which will have due considera- 
tion. 

Same subject. In view of the new contracts eiitorod 
into between Nicaragua and the United States 
wishes to be reassured of the status tlmt British 
claims referred to before will have. 

Same subject. Legation’s Mar, 27 in which Is an- 
nounced suit brought against Niairagua by (.'ostu 
Rica; Department regards action as attempt to pre- 
vent Nicaragua's fulfilment of contrnotuiil obliga- 
tions. 

Same subject. Acknowledges Department's Mnr, 1 
and has further reference in detail to the action of 
Costa Rica In the matter of the C’anal 'rreaty. 

Same subject. Advises of receipt of instnunmit of 
ratification and requests that the Secretary desig- 
nate time for exchange. 

Same subject. Incloses certain corrcsiMnidenpe be- 
tween Nicaragua and Costa Rica reluUve to claims 
of each country in connection with < 'anal Treaty. 

Same subject. Reference Department’s No, 10, 
May gives further argument for the rigiJt of 
Costa Rica to have brought suit against N Icaragna, 

Same subject. Reference I-egation’s June i;i in re- 
gard to exchange of ratifications states he will 
receive him on instant for purpose of consum- 
mating this formality. 

Same subject. Ratifications exchanged 


Same object. Nicaraguan canal route. Conven- 
tion between the United States and Nicaragua. 
Text. 

Financial affairs. Gives reasons why certain claims 
should receive preferential treatment out of the 
proceeds of the Canal Convention. 


Page 


827 

827 


a31 

831 


832 


832 


8:^3 


m 

H33 


m 

83 i 
831 

835 

835 

836 

836 

837 


838 

840 

840 

846 

819 

840 

849 

m 



LIST OT PAPEES 


Lsxm 


NIC A RAGTTA— Continued 


No. 


From and to whom 


Brown Bros. <5: Co. and 
Seligman & Co. to Mr. 
Lansmg. 


Mr. Lansmg to Mr. Jeller- 
son (telegram). 


Mr. Jolerson to Mr. Lan- 
smg (telegiam). 


Mr. Lansmg to Mr Cuadra 


Mr. Lansmg to Mr, Jeffer- 
son (telegram). 

Mr. Lansing to Mr Long 
(telegram). 

Mr. Long to Mr. Lansmg 
(telegram) 

Same to same 


102 


Mr. Halo to Mr. Lansmg— 


Mr Polk to Mr. Jefferson 
(telegram). 

313 Mr. Jefferson to Mr. Lan- 
sing. 

Mr Quesada to Mr. Lan- 
smg. 

319 Mr. Jefferson to Mr. Lan- 
sing. 


The Central American 
Court of Justice to the 
Governments of Casta 
Bica, El Salvador, Hon- 
duras and Guatemala. 
Mr. Lansing to Mr. Cuadra 


Mr, Lansmg to Mr. Jeffer- 
son. 


Mr. JofTorson to Mr. Lfan- 
sing (telegram). 


321 S; me to same 

124 Mr. Long to Mr. Lansing- 


Mr. Lansing to Mr. Jeffer- 
son (telegram). 


Mr. Jefferson to Mr. Lan- 
siieg (telegram)* 


Bate 


Subject 


Page 


1916 

July 17 

I Aug. 10 

Aug. 13 

Aug. 31 

Sept 1 

--do 

Sept. 3 

Sept 23 

Oct. 10 

Oct. 20 

Oct. 26 I 

Oct. 30 
Nov. 8 

Nov. 9 


Same subject. Offer to approach the foreign bond- 
holders with view to obtain extension of tune of 
payment of certain debts. Before proceeding, 
wishes a confirmation of understanding as to pay- 
ments to be made out of the money to be received 
by Nieaiagua undesr the treaty. 

Same subject. Department considers as premature 
any consideration of disposition of treaty funds 
prior to exchange of ratifications. Asks opinion 
whethci the retention of customs revenue seriously 
embaiiassGs Government and strengthens the op- 
position 

Same subject . Thinks mixed claims awards should 
bo paid fijst and then pro rata payment and 
arrange with bankers for balance due. Customs 
revenues and other expenditures of money should 
bo temporarily withheld. 

Same subject. States that this Government cannot 
take cognizance at this time of contracts whereby 
Nicaragua guaiantccs certain payments in disre- 
gard of Aiticle III of the Treaty. 

Same subject. Instructs to tiansmit to the Nicara- 
guan Government a note in the sense of the letter 
to Mr Cuadra of Aug 31, 1916 

Canal Treaty. Press reports several occasions that 
Salvador has presented its case to the Central Am- 
erican Court. 

Same subject. Department's Sept. 1. Salvador has 
presented its case agamst Nicaiagua to the Central 
American Court of Justice, no new developments. 

Same subject Incloses Diano Oficial containing 
demand of the Salvadorean Government against 
Nicaragua with icgaid to treaty. 

Same subject. Incloses decision of Central American 
Couit oi Justice in regard to demand filed by the 
Government of Costa Rica. 

Financial affairs. Asks for views as to whether 
Ethelburga interest should be paid out of canal 
fund. 

Same subject. Inclosas reply of the Foreign OfiSce 
to his note of Sept. 6, wherein was quoted the full 
text of Department's telegram of Sept. 1. 

Canul Treaty Advises him of the judgment of the 
Court; Nicaragua will not accept nor abide by it. 

Same subject. Incloses telegrams exchanged between 
the Central American Court and the Nicaraguan 
Minister for Foreign Affairs relative to refusal of 
Nicaragua to abide by decision of Court. 

Same subject. Comments fully upon the decision 
of the Court and the failure of Nicaraguan Govern- 
ment to abide by it. 


902 


906 


907 


907 


908 

852 

852 

853 
862 
910 
910 


887 

803 


Nov. 11 
Nov. 13 

Nov. 21 

Nov. 22 
Doc. 2 
Dee, 12 

Deo. 14 


Financial affairs. Department can take no cogni- 
zance of the contracts transmitted with your letter 
of Oct. 30. 

Same subject. Asks that the attention of the Nica- 
raguan Government be called to the fact that no 
explanation bos been given of its action as regards 
certain contracts. 

Same subject. Foreign Office has replied to his sup- 
plementary note regarding contracts signed by 
Mr. Quadra. President Diaz requests that Depart- 
ment be again informed of his needs to meet Gov- 
ernment expenses until Jan. 1. 

Same subject. Incloses a copy of his supplementary 
note to the Foreim Office and a copy and transla- 
tion of the reply thereto. 

Canal Treaty. Incloses copies of protest which Hon- 
duras forwarded to Salvador Sept. 30, and of the 
Salvadorean reply dated Oct. 7, 1916- 

Financial affairs. Asks how much is needed by 
President Diaz to meet expenses until January 1. 
Also requests opinion as to lowest estimate of all 
external and internal Nicaraguan debt. 

Same subject. In answer to Department's Dec. 12, 
President Diaz would prefer to let the matter stand 
until General Chamorro becomes President. Esti- 
mates of intwnal and external debt of Nicaragua. 


912 

912 

913 


013 


915 

915 



r.xici v 


LIST OF PAPBBS 


NIOAEAQUA— Continued 


No. 

From and to whom 

Date 

Subject 

Page 


Mr. Lansing to Mr. Jefler- 

1916 
Deo. 22 

Same subject. Gives result of conference between 

916 


son (telegram). 

1 

j 

Mr. Jefferson to Mr. Lan- 

Dec. 31 

representatives of the Department and of bankers 
of Nicaragua; $300,000 will be advanced for running 
expenses if deemed necessary. Highly essential 
that fiscal agent be appointed and a commission 
created to study conditions of indebtedness. 

Same subject. General Chamorro will furnish 

t 917 


sing (telegram). 


memoranda of amount needed for running ex- 
penses. Sets forth certain propositions made by 
General Chamorro, Mr. Benard and President 
Diaz relative to financial situation. 



PANAMA 


773 Mr. Spencer to Mr. Lansmg 


777 Same to same 


I Mr. Morales to Mr. Lan- 
sing. 


848 I Mr. Fzlee to Mr. Lansing. 

Same to same 

I Mr. Lansing to Mr. Price. 

Mr. Pnce to Mr. Lansing. 
240 Mr. Lansing to Mr. Prioe, 
242 Same to same 


901 Mr. Price to Mr. Lansing.. 
907 Same to same 

Mr. Baker to Mr. Lanamg.] 

922 Mr. Price to Mr. Lansing,. 

926 Same to same 

931 

do 1 

I Mr. Lansing to Mr. Price 
(telegram). 

349 I Bamfetft HftTWft , t , 


1916 
Jan. 14 

Jan. 22 

Feb. 28 

Mar. 14 

Mar. 22 
Apr. 1 

Apr. 6 
Apr. 12 


Disarmament of Panama police Transmits a letter 
from Governor Goethals referring to the pioseiico 
at a fire two days ago in the city of Panama of sev- 
eral Panaman policemen patrolling with riiics 
with bayonets attached. 

Same subject. Incloses a copy of a letter from Gov- 
ernor Goethals in which he states that in response 
to a recent fire alarm, members of the Panama 
police force appeared on the scone with high- 
powered rifles. 

Status of the Panama Railway Co Submits a long 
argument concerning the legal existence of and the 
nghte and privileges claimed by that company. 
His Government desires that all these questions be 
settled by diplomacy or arbitration. 

Riot at Colon, 1916. Reports further on dilatory 
tactics by Panama and incloses correspondence 
with the Foreign Office. 

Same subject. Incloses further correspondence with 
the Minister for Foreign Affairs 

Same subject. Instructs to inform the Minister for 
Foreign Affairs that this Government is not satis- 
fied with the manner in which the Government of 
Panama has dealt with this matter. 

Same subject. Reports further progress in the in- 
vestigation. 

Same subject. Approvers bis action reported in his 
No. 866. 


938 


930 


943 


924 

927 

929 


930 

030 


Apr. 16 

Apr. 20 
Apr 24 

Apr, 29 

May 6 

May 8 

May 12 

—do,,,, 

.,.do„-. 




Disarmament of police. Instructs to present formal 
demand for immediate disarmament of the police 
m the cities of Panama and Colon of high-powered 
rifles and suggesting storage of the arms in the 
Canal Zone. 

Colon riot, 1916. Incloses copy of a letter from the 
military commander of the Canal Zone comment- 
ing on the dilatory tactics of Panama. 

Same subject. Incloses copy of the report of the 
Canal Zone military authorities upon the at- 
tempted identifloaiion of the Panaman policemen 
who were involved in the riot. 

Status of the Panama Hallway Co. Incloses copy 
of a letter from the Governor of the Canal Zone, 
transmitting a report from Spedal Attorney 
Feuille, which concludes that the daims of the 
Minister of Panama are groundless and that there 
is nothing open to arbitration. 

Colon not, 1915. Incloses copy of a note to the Min- 
ister for Foreign Affairs requesting information as 
to the steps if any have been or are oonlemplated 
being taken by the Panaman Government. 

Same subject. Incloses copy of a note from the Min- 
ister for Foreign Affairs concerning the action 
taken by him to expedite the investigation. 

Disarmament of polfce. Transmits a copy of the 
note sent to the Foreign In complianoe with 
instruction No. 242 ofApr. 16, 1916. 

Same subject. Department's instruction No. 242 

^ regarding disarmament of police complied with. 

Same subject. Instructs to inmaediatoiy inform the 
Oovemment of Panama that this Ooverament 
weets prompt compliance with its demand for 
the complete disarmament of the Police in Colon 
md Panama of high-powered rifles. 

Colon riot, 1916. iwfore preeenUag a demand for 
Ml todeinxflty^ Department wm wait for a brief 
time in to give the Oovenuaant of Panama 
an oiqixirtanlty fbr action 


940 


930 

031 


949 


934 


936 

940 

941 

942 


937 









LIST ae PAPEES 


LiXXV 


No. 

From and to whom 

Date 


Mr. Price to Mr. Lansmg.. 
(telegram). 

1916 

May 13 


Same to same (telegram). 

May 16 

79 

Mr. Lansing to Mr. Morales 

...do 

251 

Mr. Lansing to Mr. Price.. 

May 17 


Mr. Price to Mr. Lansing 
(telegram). 

May 20 

4663 

Mr. de Rappard to Mr. 
Lansing. 

Oct. 20 


Mr. Lansing to Mr. de 
Rappard. 

Mr. l^ice to Mr. Lansing 
(telegram). 

Nov. 1 

Dec.' 12 

1197 

Same to same 

1 

...do. 


PANAMA-Continued 


Disarmament of police. Panaman Minister for 
Foreign Affairs has notified me that the rifles will 
be delivered under protest. 

Same subject. Agreement to ship rifles to New 
York for sale. 

Status of the Panama RaOway Oo. Incloses copy of 
the report of Special Attorney Feuille, inclosed m 
above letter. 

Colon riot) 1915. Instructs to make lepresentations 
to the Foreign Office m accordance with the sugges- 
tions of General Edwards as contained in his No. 
901. 

Disarmament of police. Dehvery of rifles completed. 
Note of protest received to-day from the Panaman 
Government. 

Panama riot claims. Award determining the 
amount due by the Panaman Government to the 
Am^can victims of the riot of July 4, 1912. 

Same subject. Acknowledges the receipt of note of 
Oct. 20. 

Same subject. Payment of award of arbitration on 
account of the death of 1 and woundmg of 16 
Americans m Fourth of July riot. 

Same subject. Confirms cable of Dec. 12, 9 a m 


76 

Mr. Tennant to Mr. Lan- 

1916 
Feb. 21 

Massage of President Melendez to the National 

955 


sing. 


Assembly of Salvador. Extracts. 



Mr. Riafio to Mr. Lansing- 

1916 

Feb. 3 

Same to same 

Feb. 16 

Mr. Lansing to Mr. Riafio. 

Feb. 16 

Same to same 

Mar. 10 

Mr. Riafio to Mr. Lansing- 

Mar. 14 

Mr. Polk to Mr. Riafio 

Mar. 22 

Mr. Lansing to Mr. Riafio - 

Apr. 8 

Same to same 

Apr. 11 

Mr Riafio to Mr, Lansing - 

Apr. 13 

Mr. Lansing to Mr. Riafio. 

Apr, 19 

Mr. Daniels to Mr. Lan- 

..-do— 

sing. 



Removal of the remains of Spanish sailors. Requests 
that the Secretary of the Navy be asked not to 
oppose the transfer of the remains of the Spanish 
sailors. 

Same subject. Requests the names of the said sea- 
men. Inquiros whether a general permit from the 
Navy Department will suffice for the removal. 

Same subject. Navy Department will cooperate in 
every way with the representatives of Has Majesty 
the Sung of Spam in removing the remains of the 
Spanish sailors. 

Same subject. The Government of the United 
Stal^ will feel honored if the Spanish Government 
will pemut it to undertake all the work of disinter- 
ment and removal of the remains of the seamen 
and their delivery to the officer commanding the 
transport. 

Same subject. Spanish Government gratefully ac- 
cepts the offer of the Amenoan Government to 
attend to the exhumation and removal of the 
Spanish dead. 

Same subject. Copies of the Department's note of 
Mar. 10 and the reply of the Spanish Embassy sent 
to the Secretary of the Navy. 

Same subject. Announces that appropnate ceremo- 
mes will take place at Portsmouth Navy Yard on 
Wednesday, Apr. 12. Names the representatives 
of the American Government. 

Same subject. Navy Department forwards 31 
Spanish flogs used in decorating the graves of the 
Spanish sailors as a token of the regard in which 
the Spanish Navy is held by the American Navy. 

Same subject. Acknowledges the receipt of the 
flags. Expresses appreciation of the sentiments 
animating the American Govorninent, 

Same subject. Acknowledges the receipt of the note 
of Apr. 13, conveying an expression of thanks from 
the Spanish Embassy. 

Same subject. Transmits certain correspondence 
received from the Commandant of the Portsmouth 
Navy Yard relative to the transfer of the remains 
of the Spanish sailors. 



TURKEY 


No. 

From and to whom 

Date 

Subject 

Pago 

1070 

Mr. Philip to Mr Lansing. 

1916 

Mar. 9 

Attempted abrogation by Turkey of the capitula- 

0(i.; 

1762 

Same to same (telegram) ... 

Apr 24 

tions. Incloses copy of note to the Porto stating 
that the Department can not agi'cc with the posi- 
tion taken by the Ottoman Go%crnmcnt in the 
matter of the unilateral abiogalion of the capitu- 
lations. The Porte’s reply 

Same subject. Instructions have been sent to pro- 

l)i)i 

1326 

Same to same 

May 23 

vmdal authorities directing them to avoid all fric- 
tion with Amaicans. All matters of dispute are 
to be refeiTed to Constantinople for settlement. 
Consuls have been similarly inatructed, with 
orders to refer matters of dispute to the Embassy. 

Same subject. Transmits a copy of a note verbulo 

96.') 



June 15 

to the Foreign Office which presents a number of 
cases m which the local authorities had acted in 
an arbitrary manner with respect to American 
consular officials and employees. 

Same subject. Transmits a copy of the English 

m 


Ottoman Embassy to the 

Aug 21 

translation of a sot of instiuctions issued for the 
gmdance of provincial officials and dealing with 
the results of the abrogation of the capitulations. 
New Ottoman customs tariff. New customs tariff 

975 


Department of State. 

Department of State to the 
Ottoman Embassy. 

Sept 7 

on the basis of specific duties to be put into effect 
on and after Sept. 1-14, lOlG. 

Same subject. Acknowledgment of the receipt of 

976 



the memorandum relative to now customs tiirilT is 
made without prejudice to the position which the 
TJnited States has announced or may licroaftor 
announce with reference to the legality of the 
action. 



CORRESPONDENCE 


CIECULABS 


SERVICES EOR THE REPUBLIC OE PAHAHA 
File No. 704.1900 No. 442. General Instruction. Consular, 

Department op State, 

W ashw^ton^ Jamiary 21, 1916. 

To the American Consular 0-fficers {Including Consular Agents) 

Gentlemen: Having reference to previous instructions relative 
to the interests of the Republic of Panama, you are instructed to 
continue to use your good offices in representation of these interests 
and of the citizens of Panama in the country to which you ai'e 
accredited, provided that the Government of Panama has not ap- 
pointed consular officers in that country. In connection with the 
discharge of tlie duties of consular officers in behalf of the Panaman 
Goveriunent, your attention is directed to pai’agraphs 174 and 453 
of the Consular Regulations of 1896. 

Your signature in your official capacity on aU papers executed 
for Panama should be followed by the words: In charge of the 
interests of Panama. (Circular of January 12, 1904.) 

certipicatton of documents 

Duplicates of all invoices certified in behalf of the Panaman 
Government should be sent direct to the Minister of Hacienda, 
Panama, and duplicates of manifests should be forwarded to the 
inspector of the Panaman port of destination of the vessel. (Cir- 
cular of April 23, 1904.) 

Invoices, manifests, and other documents for vessels or cargoes 
belonging to or for the use of the Isthmian Canal Commission (as 
specified in section 1 of the Executive Order of December 3, 1904) , 
cleared or consigned for or from the ports of Ancon or Cristobal, 
are to be certifiSl by officials of the United States; but such docu- 
ments as do not appertain to such specially designated goods, wares, 
and merchandise are, by virtue of section 1 of the Executive Order 
of December 6, 1904, to be certified by officials of the Republic of 
Panama or persons authorized to act for them. (Circular of April 
6, 1009) 


1 



2 


FOKBIGIT EEIiA-TTOlTS 


Masters of vessels clearing for Canal Zone ports carrying cargo 
subject to the payment of duty to Panama are required to carry 
an extra copy of their manifests for the customs autlaorities of 
Panama. (Circular of July 20, 1909.) 

FEES FOR SERVICES PERFORMED 

Previous instructions (circular of December 12, 1904) authorized 
the retention as personal compensation of one-halt the gross 
amount of fees, not in excess of fifty (50) pesos a month, collected 
for such consular services as may be performed, the remaining 
amount being required to be remitted to the Government of Panama. 

You are now informed that, in accordance with the regulations 
of the Government of Panama for its consular service, honoraiy 
consular officers, who are named by the executive power to places 
where there is no established salaried consular officer, may retain 
each month as a remuneration of service and to defray the office 
expenses fifty per cent of the fees they collect up to one hundred 
(100) balboas ($100 United States gold) per month. 

When the monthly fees exceed two hundred (200) balboas, all 
monies received over the sum of one hundred (100) balboas, whi<‘h 
is to be retained, must be remitted to the Panainan Government. 

You are authorized, therefore, in accordance with Ihe laws of 
the Government of Panaina, to retain one-half of the gross amount 
of fees collected for services performed by you for that Govei’n- 
ment, not in excess of one hundred balboas ($100 United States 
gold) per month. 

The fees so retained should be turned into the Treasury of the 
United States under the instructions relating thereto in Circular 
Ko. 330, of July 10, 1914. 

Your offices have been furnished with copies of the tariff of 
consular fees prescribed by the Government of Panama, as in- 
dicated in the circular of April 28, 1905. The tariff is also con- 
tained in the Digest of Circular Instructions of 1908. 


PUBLIC HEAJjTH SERVICE 


Officers of the Public Health and Marine ITospittil Servi<‘e of 
the United States detailed for duty at foroigm ports are under in- 
structions to act in regard to vessels sailing ior ]>orts of Panama 
as they do in regard 'to vessels sailing for United States ports. 
Consuls at ports at which medical officei’s are stationed will co- 
operate with them in carrying out these instructions. (Circular 
of April 23, 1904.) 

The following circulars, the substance of which hns been in- 
corporated in the instructions herein coniained, are therefore, re- 
voked: January 12, 1904; April 23, 1904; December 12, 1904; 
April 5, 1909 ; July 20, 190k 

Eeference is made to circulars of July 20, 1904, and March 16, 
1905, enclosing orders from the War Department, and of April 
28, 1905, enclosing the Panama Tariff of Cousular Fees. 

I am [etc.] 


For the Secretary of State : 


Wiijjuu J. Caur 



UlJttUU JLAJKO 


O 


ATTITITOB OF THE TOTITED STATES TOWABES IrATIH AMEBICA 

EUe No. 710.ll/230a 

TAe Secretary of State to certain American Missions'^ 

[Circular telegram.] 

Department of State, 
Washington^ January 1916. 

It is proposed to embody, in a general convention to be subscribed 
to by all the American Eepublics, the following provision, in four 
articles, in which the several Republics agree : 

I. To guarantee their territorial integrity and political inde- 
pendence. 

II. To settle all boundary disputes by amicable arrangement or by 
arbitration. 

III. To submit all differences between any two of them, excepting 
those affecting honor, independence and interests of third parties, to 
a permanent international commission, which will render a decision 
within one year, and if decision be unsatisfactory to submit such 
differences to arbitration. 

IV. To prohibit the departure of military forces, aims or ammuni- 
tion from their territory to revolutionists in other Eepublics. 

This matter was referred to by President Wilson in his speech to 
the Second Pan American Scientific Congress on January 6^ and 
has already been accepted in principle by a majority of the Republics 
represented at that conference. 

Should the Chief Executive or the Minister for Foreign Affairs 
of the country to which you are accredited broach this subject to you, 
you majr informally express the interest taken in this proposal by 
the President of the United States and the hope of this Government 
that a treaty to this end may be signed by all the American 
Eepublics. 

Lansing 


FUe No. 710.1 l/230a 

The Secretary of State to certain American Missions * 

[Circular telegram.] 

Department of State, 
Washington, March ^7, 1916. 

On January 24 certain American Diplomatic Missions were in- 
formed by telegraph that it is proposed to embody, in a general con- 
vention to be subscribed to by all the American Republics, the fol- 
lowing provision, in four articles, in which the several Republics 
mutually agree. 

I. To guarantee their territorial integrity and political inde- 
pendence. 


^ To the American Missions in Argentina, Brazil, Boliyia, Oosla Bica, Cuba, Ecuador, 
Guatemala, Honduras, Panama, Paraguay, Peru, Salvador, Uruguay, Venezuela. ' 

® Printed in the Daily BuUrtm, Second l^iu American Scicnfifie Congress January 
7, 1916, department of State Library JX! 1424 C 7 Sc 2C, 1915/16- 
®To the American Missions in Colombia, Dominican Republic, Haiti and Nicaragua. 



n. To settle all boundary disputes by amicable arrangement or by 
arbitration. 

III. To submit all differences between any two of them, excepting 
those affecting honor, independence and interests of third paii ies, to 
a permanent international commission, which will render a decision 
within one year, and if decision be unsatisfactory to submit such 
differences to arbitration. 

IV. To prohibit the departure of military forces, arms, or ammu- 
nition from their territoiy to revolutionists in other Ecpuhlics. 

This matter was referred to by President Wilson in his speech to 
the Second Pan American Scientific Congress on January fi and has 
already been accepted in principle by a majority of the Pepiiblics 
represented at that Conference. 

You may, opportunely and in your discretion, informally express 
the interest taken in this proposal by the President of the ITnited 
States and the hope of this Giovernment that a treaty to this end 
may be signed by all the American Eepublics. 

Lansing 


FfleNo.no.ll/ 268 a 

The Secretary of State to the Oolomhian Minister* 

Department op St.\.te, 

Washington^ April 1, W16. 

Sir: You are doubtless aware, from the statement of the President 
of the United States in his address to the Second Pan American 
Scientific Congress, on January 6, 1916, that this Government in- 
dulges in the hope that there may be embodied in a general con- 
vention to be subscribed to by all Ainerican Republics, a provision 
in which the signato^ Governments will mutually agree as follows : — 

1. That their political independence and territorial integrity be 
guaranteed. 

2. That all disputes regarding boundary questions be settled by 
amicable arrangement, or by arbitration. 

3. That all differences between any two of them, with the excep- 
tion of questions affecting the honor, independence and interests of 
third parties, be submitted to a permanent international ccmi mission, 
whose decisions thereon will be rendered within one year; and that 
such differences be submitted to arbitration, if the decision prove 
unsatisfactory. 

4. That the departure of arms, ammunition or military forces from 
their territory to revolutionists in other Republics be prohibited. 

In order that your Government may be apprised of the proposal 
which it is believed is acceptable in principle to a majoiity of tlie 
Republics represented at the Second Pan American Scientific Con- 
gress, the American Legation at Bogotd has been recently informed 
of the matter which I have the honor herein to bring to your atten- 
tion. 

Accept [etc.] 

Robert Lansino 

<The same, mUxMt mutaniit, to the Mlnlsteis of the Dominican Republic, Haiti, and 
l^lcara^oa. 



CmCULABB 


5 


APPLICATION OP. SECTION 11 OP THE SEAMEN>S ACT OP IVLAECH 4, 
1915, TO POEEIGN VESSELS 

File No. 196.6/86 

Department of State, 

Washington^ March P, 1916, 

To the Di'plomatic 0-fficers of the United States in certain countries 
Gentlemen : At the request of the Acting Secretary of Commerce, 
the Department quotes for your information and for communication 
to the Governments to which you are respectively accredited, a 
circular letter addressed by the Commissioner of Navigation to 
Collectors of Customs, Shipping Commissioners and others con- 
cerned, as follows : 

Section 11 (allotments and advances of seamen's wages) of the Seamen’s 
Act of March 4, 1915, will apply to seamen engaj>ed in the United States for 
vessels of every foreign nation on and after March 4, 1916. 

Paragraph 6, Department Circular No. 259 of August 10, 1915, is amended 
accordingly. 

Please so advise all consuls in your district. 

A print of the Act of Congress approved March 4, 1915, known as 
the Seamen’s Act, is enclosed herewith for your further information. 
I am [etc.] 

For the Secretary of State : 

Frank L. Polk 


EADIO COMMUmCATION IN THE AMERICAN HEMISPHERE 
File No. 810.74/68b 

The Acting Secretary of State to Avihassador Stimson'^ 

Department of State, 

W ashington,^ March 16,^ 1916, 

Sir : Referring to the Department’s circular instruction of October 
13, 1915,® regarding radio communication in the American Hemi- 
sphere, and in accordance with an informal understanding reached in 
the conference of representatives of the American Repuolics held at 
the Department of State on January 7, 1916,’^ there is herewith en- 
closed, in triplicate, a compilation of the recommendations of the 
Departments of State and the Navy on this subject, which is being 
also communicated to the representatives of the American Republics 
at this capital. 

In transmitting to the Foreign Office one copy of the enclosed 
memorandum, you will reqiiest the Government to which you are ac- 
credited to inform its diplomatic representative in Washington, to 
whom a copy of the circular has also been sent, of its opinions and 
suggestions, in order that the next conference referred to in the 
memorandum, which will comprise the respective diplomatic repre- 
sentatives, may be in possession of the opinions of all the interested 
Governments. 


^MutaUs mutandi$ to tbe American diplomatic representatlvefl in Latin American 
countries, except Mexico and Panama. 

•For. Eel. 1915, p. 24. 

’ See International Conferences and Congresses, p. 976, 


106413*— FB 1916 9 



6 


FOEEION EBLATIOITS 


To such, report, "which should be in triplicate, as^you may make re- 
garding the attitude of the Government in this connection, you will 
add in full such recommendations and suggestions as you may deem 
properly supplemental to your previous reports. 

I am [etc.] 

For the Acting Secretary of State : 

John E. Osbornh 

I Inclosure — Memorandum] 

Pursuant to an informal understanding reached in the conference of repre- 
sentatives of the American Republics on the subject of radio communication 
between the countries of the Western Hemisphere, held at the Department of 
State, Washington, on January 7, 1916,^ recommendations and observations 
have been submitted by the Navy Department for the consideration of the 
interested Governments. As indicated by the Counselor of the Department of 
State in opening the conference, the object of the Government of the United 
States in calling this informal meeting was ; 

1. The Interest that it has taken in the development of this science. 

2. The knowledge that It has obtained from various sources that radio stations erected 
by European capital, or operated and controlled by European countries, have boon in- 
stalled in certain countries in Central and South America, as well as in the United 
States. 

3. Its conviction that such a situation is replete with posHible eomplieaiiouK by roasoii 
of the fact that unwarranted use of such stations by belUseronts in lime of war iui;;ht 
seriously jeopardize the neutrality of the countries in which the s( a lions are operated. 

4. Its belief that tlio ownership and control of this vitally important means of com- 
munication between the American continents should rest in syini)utli<‘tio luiiida and 
should not pass beyond this hemisphere and fall under non-xVmeriean jurisdiction. 

The recommendations of the Navy Department are submitted with a view 
to outline a plan by which methods of radio organisation, control, operation, 
and administration in the American Republics may bo made uniform and <*o- 
ordinated. 

(1) For the economic and military requirements of each individual State; 

(2) For the economic and raUltary requirements of the Amorican nut Ions acting in 
concert. 

I. Government ownerBhip and control of radio stationfi . — ^Tlio oconomio de- 
velopment and prosperity of a country in times of pt^nco may peril best b<» 
promoted by a system of communication and intercourse both at hc>m(‘ and 
abroad which is reasonable in cost and rapid in operation. It is bolit'vcMl that 
these advantages may be most surely secured under Govornmenf owiu'rship or 
control. One of the most serious menaces to a country's ssifoty in time of 
hostilities is that of having its communications under any otlHT management 
than that of the national Government, and especially is this llaj cas<' at ilio 
outbreak of hostilities, when the necessity for rapid and reliable tolegraiihlc 
communication is paramount. 

In advocating government ownership and control of all radio .stutlon.s It Is 
desired to point out that the extended experience of the Navy Depart nuMit In the 
management of both commercial and military radio organization and the more 
recent experience gained through controlling and directing tlio censorsliip of 
radio communication in this country during the lOnrojioHii War, has .shown 
most emphatically the need that radio .stations lie owiu^d, operated, nml ad- 
ministered by the Governments themselves, rather than that such ownership, 
operation, and control be vested in commercial corporations. Th<‘ dhlleullios 
attending non-Government ownership have been brought to the attention of the 
Navy Department recently and with such force as to eomiiel it to present to 
the Governments interested the grave imiiortanee of having all radio stations 
under strict national ownership, administration, and operation and prompts It 
to urge upon the other Governments the consideration tlier(‘Of liefore any ex- 
tensive private system of stations is established within their territorial Juris- 
diction. 

No communication system, however efficient it may be Individually, is capab!<* 
of rendering completely satisfactory service if suddenly requlreil to change from 

See International Conferences and Congresses, p. 976, 



CEBCITLAES 


7 * 


control by one management to that of another. Such change of control is ac- 
companied necessarily by the loss of efficiency attendant on all administrative 
changes, and consequently there can be but one satisfactory solution to the prob- 
lem, which is that the Governments shall administer, operate, and control the 
system at all times. There is then no change necessary in time of national dan- 
ger, attended as it would inevitably be with loss of efficiency. 

While, for reasons adduced above, it is believed that governmental owner- 
ship and operation of radio stations is preferable, these recommendations 
should not be construed as militating against the granting of concessions to 
reputable American concerns for the erection and operation thereof, provided 
all such concessions contain the specific provision that in case of national or 
Pan American international exigency their operation and control shall, upon 
demand and during such time of governmental necessity, pass to the Govern- 
ment in whose territory the station is located. 

2 Uniform organization and facilities for communication. — ^If some organiza- 
tion can he formulated and effected by the nations of North, Central, and South 
America, having for its objective the provision of uniform means of rapid 
communication for military, naval, and commercial needs, not only in each indi- 
vidual country, but also between all such countries, the resultant advantages 
of having ready at all times, with special reference to time of national danger, 
such organized facilities for the rapid transmission of information can not be 
overestimated. 

No doubt each country has an organization for its radio service which is 
adapted to the peculiar needs of the country so far as relates to its military 
and naval establishments and while tliere are undoubtedly many regulations 
necessary to the individual nation, it is believed that the main features of all 
such organizations are similar, since the problems to be solved in any -military 
organization are naturally very much alike. 

3. UoorcUnation of means of communication. — ^Each nation will wish to pre- 
serve its entire independent jurisdiction in all matters concerning its own radio 
system, but in any understanding in which all American nations might wish to act 
in concert there is no one consideration more vital to its success than that of hav- 
ing a common understanding as to the most rapid and effective way by which 
information may be transmitted in the shortest time. The communications of 
each country may by themselves be organized efficiently, but unless there is 
some plan understood and adhered to by all, there will be lacking that coor- 
dination so necessary to successful accomplishment of the common objective. 
An interlocking system could be established which, through use during times 
of peace for the exchange of official and commercial radiograms, would insure 
smooth operation in time of national peril. 

4. AdvisaUUty of mutual understanding and cooperation. — ^The basic prin- 
ciples governing this essential military and economic cooperation are as fol- 
lows: 

(a) Efficient radio communication for military and other Government pur- 
I)Oses is a necessity ; 

(b) Efficient radio communication requires effective control; effective control 
of radio requires a monopoly; and the Government should exer(^se such 
control ; 

(c) Military necessity demands not only efficient and rapid communication, 
including effective control, but protection of the radio establishments from 
destruction ; 

(d) During periods of strained relations, as well as during war, direct Gov- 
ernment control and operation would be the only safe and effective control and 
operation — ^the personnel to be composed exclusively of citizens of the country 
operating the stations, or of other countries in the Pan-American Union; 

(e) Concessions to one private company would be followed by demands from 
other private companies for similar concessions, on the basis of equity, and a 
multiplicity of stations thus develop, which, if not carefully guarded against, 
would result In serious confusion from interference ; 

(f) National economy, as well as national security, would be promoted if the 
national Governments own, administer, and operate radio stations for both 
commercial and military communication; 

(g) Inter-American Government and private communication will be greatly 
expedited, result’ng In improved official, economic, and social understanding 
among the several nations and the safety and security of the American nations; 

(h) The discussion, formulation, pronaulgation, and execution of plans for 
the mutual defense of those nations could thus be carried out effectively. 



•8 


I’OBEIGK BELATTOITS 


5. D^lopmmt of a suitable organisation , — ^The development of an organi- 
zation for Pan American radio communication based on the above considera- 
tions can, in the opinion of the Navj" Department, be carried out through the 
agency of an inter-American committee composed of specially qualified rep- 
resentatives from each country. This committee should be charged with the 
duty of preparing the regulations necessary to combine the radio services of 
all American Republics into one homogeneous system for the transaction of 
Government and private (or commercial) business, to arrange traffic regula- 
tions, to designate regular and alternate routes of transmission, to assign wave 
lengths to the various stations with a view to eliminating interference, to estab- 
lish rates for the service rendered, and in general to standardize and sys- 
tematize the administration, operation, matdriel, and personnel features of 
radio communication in the entire Western Hemisphere. 

6. Proposed, plan and information for delegates to conference , — The plan sug- 
gested below is dependent for its establishment and operation on the precon- 
certed understanding that all of the Republics in this hemisphere are agreed 
as to its necessity, and, concurrently, that the radio service of each country shall 
be administered and operated by direct governmental authority and personnel. 
It is tiierefore recommended that each of the American Republics designate one 
or more representatives to confer at the earliest* practicable date in Washing- 
ton with other representatives similarly designated, with a view to effecting an 
organization and understanding in regard to radio communication in this 
hemisphere. 

In order that the delegates may be informed of the general nature of the 
operation of the system that the Navy Department has in mind, the following 
is submitted as embodying the essential features thereof. 

It is proposed to divide the territory embraced in the American Republics 
into zones of radio communication, with one control radio station for each 
zone, which latter will receive and relay radiograms to destination ns may he 
necessary and in accordance with specific regulations drawn up by the com- 
mittee. There will be one main station for the entire hemisphere, located in as 
nearly a central position, geographically, with reference to all the Aniori(*an 
Republics, as may be practicable. Such main station shall be capable of diiv^ct 
communication with central stations in each of five proposed zones, covering the 
territory of the interested Governments. The main station might well be that 
already established in the Panama Canal Zone. The zone central stations 
should be at the following places, tentatively : Buenos Aires, Para, Guatemala, 
Guantanamo, Washington. Each of these zone center stations would serve 
as receiving and distributing stations for the stations in their restieclive zones, 
and would be capable of direct communication with the main station. In each 
country, preferably at the capital, there would be a central controlling and dis- 
tributing station, which would be capable of direct communication with the ap- 
propriate zone center station. This same system of zones and distributing 
stations would be used in each country, so that uniformity would be observed 
in the operation and traffic features throughout the hemisphere. 

It may be said that an organization similar to that proposed has been tried 
out in this country with higldy satisfactory results. 

The following diagram represents graphically the ideas advanced: 



dBCITLARS 


9 


WEST INDIES 



X Main Station (1). 

Y Zone Center Stations (5). 

Z Government Center Stations (distributing stations). 

V Local stations necessary for each country. 

In order to render the proposed plan of operation adaptable to increasing 
needs (especially commercial), regulations to govern the operation of special 
long distance transmission between stations used primarily for commercial me»- 
sages might be drawn up which would include provisions : 

(1) For the independent operation of such commercial stations; 

(2) For their amalgamation with the main system at such time as the in- 
terested Grovemments may designate; 

(3) For acceptance of official messages of the various (Governments at all 
times at reduced rates, such official messages to have precedence over commer- 
cial messages; 

(4) For the employment exclusively of operators who are cltiz^is of the 
American Kepublics. 

7, Information desired to perfect plan , — In order to develop a completed plan 
for submission to the suggested conjBerence, the following Information concern- 
ing the equipment of the radio stations now in operation in the respective 
countries is desired; 

Normal reliable daylight range expressed in miles or Mlometers. 

Power of station, input in watts. 













10 


FOBBIGN KBIATIOKS 


Character of transmitter, viz., undamped or damped waves. 
Normal radiated current, amperes in antenna. 

Height of antenna. 

General character of antenna. 

Most efficient wave length for transmission. 

Range of wave lengths it is possible to obtain. 

Department of State, 

WasHngton, March 11, 191$, 


PROPOSED RETURN TO THE UNITED STATES OE NATDRA.LIZED 
CITIZENS AGAINST WHOM THE PRESUMPTION OE EXPATRIA- 
TION HAS ARISEN 

Abrogation of Rule {d) of the Gircular Instmction of Novcm- 

ler 18, 1911 

File No. lS6.2/66a 

Departmi^ni’ of StAI'E, 
Washington, June /, WHO, 

To the AnieHoan Diplomatic and Consular Officers (Tnclvdmg 
Consular Agents) 

Gentlemen: In a circular instruction, niuubor 77, of November 
18, 1911,° the Department authorized the issuance of emer^>’ency nass- 
ports to naturalized American citizens who had bi'OUfjht upon tlicm* 
selves the presumption of expatriation under the provision of se<‘tion 
2 of the act of March 2, 1907, by a protracted residence abroad j and 
were not able to overcome such xDresumption under the cstablisixsd 
rules, upon such persons showing that they had “made delinite 
arrangements to return immediately to the United States for perma- 
nent residence.” The Department held that the making of such 
arrangements was in itself sufficient to overcome the presumption o£ 
expatriation, and prescribed rule (d) to that eltect. In rectuit y('ars, 
and particularly since the outbreak of the present war, dijilouiatic 
and consular omcers having authority to issue emergency passjxuts 
have been called upon in numerous cases to issue such ])assports to 
naturalized citizens who had been residing abroad for many years, 
some of them for periods of twenty years or more. In many b f these 
cases the facts and circumstances indicated that the persons <jon- 
cerned had established their permanent rcvsidence abroad, usually in 
their native land^ and would not have decided to come to the \ 

States but for difficulties experienced abroad, particularly those aris- 
ing out of the war. It appears that the real motive for returning to 
the United States was in some of these cases a dosii'c to avoid pay- 
ment of war taxes and, in others, a desire to evade f)erformance of 
military service on the part of the applicants themselves, or to safe- 
guard the interests of their sons. In many of those cases the persons 
concerned had not obtained American passports or registered in 
American consulates, or otherwise held themselves out as Amer5(‘.an 
citizens for many years past, and all attendant facts indicated com- 
plete abandonment of the United States. 

The Department is of the opinion that it was to meet su<^h cases as 
those mentioned above that the provisions contained in the second 
paragraph of section 2 of the Expatriation Act of -March 2, 1907, 


» For. EeL 1011, p. r 


OrBCTTLARS 


11 


were adopted, and the Department has reached the conclusion that 
American passports should not be granted for the purpose of 
enabling persons of the class in question to return to the United 
States. Consequently, the Department hereby abrogates rule (d) 
prescribed in the circular instruction of November 18, 1911, where- 
under the presumption of expatriation could formerly be overcome. 

It is believed that all meritorious cases of naturalized citizens who 
have brought upon themselves the statutory presumption of expa- 
triation, and have not been residing abroad for health, or education, 
or church missionary work, or promotion of American trade and 
conunerce, will fall within the purview of rule (c) of the circular 
instruction of April 19, 1907, entitled “ Expatriation,” under which 
a person against whom the presumption has arisen may overcome it 
by showing “ that some unforeseen and controlling exigency beyond 
his power to foresee has prevented his carrying out a bona fide inten- 
tion to return to the United States within the time limited by law, 
and that it is his intention to return and reside in the United States 
immediately upon the removal of the preventing cause.” 

With relation to rule (c), it may be well to observe that it is not 
applicable to cases of persons who have been engaged abroad in local 
business of some kind and have failed, through the ordinary vicissi- 
tudes of business rather than some special misfortune, to accumulate 
means sufficient to enable them to return to the United States. 

I am [etc.] 

Frank L. Polk, 

Acting Secretary 


AMENDMENT TO EXILES OOVEENING THE ADMISSION OE CHINESE 
FUe No. 161.01/43 

Department op State, 

WasMngton^ June 5, 1916. 

To tlie American Diplomatic omd Consvlwr Oficere, {Including 

Consular Agents) 

Gentlemen : The Department is in receipt of a letter dated May 
19, 1916, from the Acting Secretary of Labor enclosing a copy of a 
circular letter to commissioners of immigration ^and inspectors in 
charge of districts promulgating a recent amendment to rule 9 of 
the “ Rules Governing the Admission of Chinese.” 

The amendment in question, which makes a material change in 
the holding of the Department of Labor regarding the admissibilily 
of the sons born abroad of Chinese citizens of the United States, 
provides as follows: 

Buie 9 of the Chinese Buies, approved October 15, 1916, is hereby amended by 
striking therefrom paragraphs (f) and (g), by changing the letter designation 
of the last paragraph thereof from (h) to (g), and by inserting a new para- 
graph designated (f)i reading as follows: “(f) The lawful wife of an Amer- 
ican citizen of the Chinese race may be admitted for the purpose of joining her 
husband, and the lawful children of such a citizen partake of his citizenship 
and are therefore entitled to admission. In every such case convincing evi- 
dence of citizenship and relationship shall be exacted.** 

I am [etc.] 

For the Acting Secretary of State: 

John E. Osbornb 



12 


FOBEIGN KELATTONS 


GIFTS INTENDED FOR THE PRESIDENT 


Pile No. 093./13a 


Department of State, 

ashington^ Jime 1916. 


To the Diplomatic and Consular Oificers of the United States 
Gentlemen: There is printed on the overleaf, for the information 
and guidance of the diplomatic and consular officers of the United 
States, the text of an executive order, dated June 23, 191G, directing 
them to refuse to accept, for transmission, gifts which citizens or 
subjects of foreign countries may desire to present to the President, 
and requiring tliat the tender of such gifts be made through the 
respective diplomatic agents at Washington. 

I am [etc.] 

Eouert Lansing 


Bxeontive Order 

It not infrequently happens that diplomatic and consular (tlllcors of the 
United States are requested to be the merlium of transunssiou of lilorjiry, 
scientific or artistic works, or other gifts, which citizens or subjects of foreign 
countries desire to present to the Prosidont. 

In order that the practice in this rei^ard may accord with that generally oi>- 
served in the matter of similar presentations to the heads of other govern- 
ments, it is hereby ordered that diplomatic and consular otU(‘ers of the United 
States will hereafter, whenever request is made of them by a (*itiz<m or su1).|<‘ct 
of a foreign country to transmit a gift of any character to the Presulent, refuse 
to accept such gift and will advise the donor that it is required that tlie presiui- 
tation be made through the diplomatic representative of the donor’s government 
at Washington. 

WooDEow Wilson 

The White House, 2S June, J916, 

[No. 2406] 


DEGISIiATION ON NEGOTIABLE INSTRUHBNTS AND COMMERCIAIi 

PAPER 


File No. 810.61/678 


DEPAltTMENT OF StATE, 
Washington, June W16. 


To the Diplomatic Offi^cers of the United States in Latin American 

Countries 

Gentlemen : In order to make the direction of its work as cff<*ctivo 
as possible, the International High Commission which met at Buenos 
Aires in Ajpxil last adopted a resolution providing for a Central 
Executive Council ^^whose duty it shall be to centralize and coordi- 
nate the labors of the Commission, to keep the several sections in 
constant touch with one another, and to carry out the conclusions of 
the International High Commission and the l^an American Financial 
Conferences, and to prepare the program, reports, and all other 
material necessary for the holding of the second meeting of the 
International High Commission.” The executive officers of the 
United States section of the High Commission have become Prasi** 
dent, Vice President and Secretary General of this Council. 

As one of the first steps in carrying into effect the important and 
constructive recommendations of the International High Comtnis- 



CIBCULARS 


13 


sion at its Buenos Aires meeting, the office of the Central Executive 
Council desires to obtain the most accurate and recent information 
with reference to the status of national legislation on negotiable in- 
struments and commercial paper. To this end the Central Executive 
Council, through the Secretary of the Treasury, has requested the 
Secretary of State to instruct the Diplomatic Officers of the United 
States in Latin American countries to send at as early a date as con- 
venient a full statement of the legislation in each country with 
reference to 

(a) Bills of exchange; the status of legislation ratifying the 
Hague Convention on Bills of Exchange of 1912; 

(b) Checks; 

(c) Bills of Lading; 

(d) Warehouse Receipts. 

The International High Commission is interested in these subjects 
chiefly from the point of view of their character as negotiable in- 
struments, and while information relative to customs regulations and 
other fiscal machinery involving, for instance, bills of lading, will 
be noted with interest, the Commission are especially anxious to 
secure a summary of existing law or any proposed changes. In case 
the diplomatic representatives of the United States desire to forward 
commercial codes or any other printed matter, it would be of great 
assistance to the Central Executive Council if such representatives 
would inquire of competent legal authority as to the present effect of 
these laws. 


It is not desired, however, that the diplomatic representatives 
should incur any expense in this connection. 

The Department would be pleased to have you comply with the 
wishes of the Central Executive Council as far as practicable. 

I am [etc.] 


For the Secretary of State: 


Alvey a. Adeg 


OPIUM LAWS AHD REaULATIONS 

FUo No. 800.114/22 

Department or State, 
'Washington^ July 3^ 1916. 
To the Diplomatic OficcTs of the United B^tates 
GentijEmen; Referring to the Department’s circular instructions 
of March 11 and July 8, 1914,^^ regarding the laws and regulations 
of foreign countries governing the importation of opium and 
cocaine and their derivatives, I have now to inform you that 
since the greater part of the information regarding these laws and 
regulations was received, a new factor has entered the situation in 
the shape of the International Opium Convention proclaimed by 
the President on March 3, 1915.^^ 

As that Convention requires the contracting powers to take cer- 
tain measures for the regulation of imports of opium, cocaine, etc., 
it is desired that you request of the government to which you are 
respectively accredited, a statement of the conditions under which 




14 


FOREIGN RELATIONS 


they will permit the importation of the articles in question, in order 
that the regulations which Section 6 of the Opium Act of January 
17, 1914, requires the Secretary of State, the Secretary of the 
Treasury, and the Secretary of Commerce to make may he early 
formulated and published. 

W^ith a view to acquainting those governments with what the 
Government of the United States has done in the regulation of im- 
ports of these drugs, I enclose a copy of Treasury Decision 34221 
of March 3, 1914, containing a copy of the Opium Act of January 
17, 1914, and the regulations thereunder. 

Tnggmnfih as it is neccssary to consider in this connection im- 
ports in the mails, it may be stated to each govermnent that “ poison 
such as opium” was prohibited by the United States from trans- 
mission in the regular mails and the parcel post exchange with 


foreign countries. 

You will give tliis matter immediate attention and forward to 
the Department the statement requested as soon as possible. 

I am [etc.] 

Robert Lansing 


INTBBNATIONAl. FARM CONGRESS 

Filo No. 561.14A11 

Dbtartment of State, 
Washington^ Augitst 1016 . 
To the Diplomatic Offic&rs of the United States 
(tentlemen : Pursruant to a provision contained in the Agricultural 
Appropriation Act, approved August 11, 1916, you will extend in the 
governments to which you are respectively accredited an invitation to 
“ appoint delegates or representatives to the International Farm Con- 
gress to be held in El Paso, Texas,” October 19-21, 1916. 

The International Farm Congress has for its purpose the .sprciad 
of knowledge concerning better farming methods, especially in 
regions having light or iinegular rainfall, and priniarily the (eacli- 
ing of conservation of moisture through scientific tillage nietluxhs. 

In extending the invitation and expressing the hope that the in- 
vited governments may deem it of advantage to be reprt'Kcnlod a( 
the Congress, you wiU explain that, while the invitation is oxtt'ndod 
by the authority of the Congress of the United States, the Inter- 
national Farm Congress will not be held under govornmeut anspice-s 
and that no provision has been made by the Congress of the United 
States for the payment of the expenses of the foreign repinsentatives 
who may attend, or for their entertainment. 

In connection with the International Farm Congress there will be 
held the International Soil Products Exposition, at which the De- 
partment of Apiculture of the United Stato..s will make an exhibit 
illustrative of the investigations, products, and pro<!esHeH relating to 
farming in the subhumid, arid, and semi-arid regions of the United 
States. 

Participation in this Exposition by the nations of the world will 
be welcomed by the management of the International Farm Congress. 

I am [etc.] 

For the Secretary of State: 

John E. Osborne 



CXBCTDXAES 


15 


nTTEKNTA'FIOrAIi raBTOAXIOlT COI^aBESS 
Pile No. 561.13A23/la f 

Department of State, 
’Washington^ September 8, 1916. 
To the Diplomatic 0-jJicers of the United States 

Gentlemen : Pursuant to a provision contained in the Agricultural 
Appropriation Act, approved August 11, 1916, you are instructed to 
extend to the governments to which you are respectively accredited 
an invitation to appoint delegates or representatives to the Inter- 
national Irrigation Congress to be held at El Paso, Texas, October 
14^18, 1916. 

At tills coming Congress, subjects will be discussed apjiertaining 
to the methods, systems and apparatus looking to the better irrigation 
of fai'm and other lands, and particularly to the reclamation of arid 
country, and it is expected that at this meeting much information will 
be available of value to those engaged in farming and other agri- 
cultural pursuits. 

You will express to the government of your official residence the 
hope that it will send delegates to attend the Congress and explain 
that, while the invitation is extended by the authority of the Con- 
gress of the United States, the coming International Irrigation Con- 
gi'ess will not be held under the auspices of this Government, as no 
provision has been made by that body for the payment of the ex- 
penses of foreign representatives who may attend or for their enter- 
tainment in this country. 

Following the International Irrigation Congress, there will be 
held at El Paso, the International Farm Congress of which you have 
been previously advised. 

Participation in this conference by the nations of the world will 
be heartily welcomed by the management of the International Irri- 
gation Congress. 

I am [etc.] 


Bobert Lansino 



AEQ-ENTINA 


MESSAGE OE THE PBESIDENT, VICTORINO DB LA PLAZA, TO THE 

CONGEESS 

PUe No. 836.032/21 

Ambassador Stimson to the Secretanj of State 
(Extract] 

No. 236 

Amekican Embassy, 
Buenos Aires^ Juno 0, tOW. 

Ser: I have the honor to enclose copy of the oflicial vohiino con- 
taining the President’s speech at the opening of Congre.ss. 

I enclose translation of that part of the President’s address Avhich 
relates to Mexico, Pan American alFairs and the relations of the 
Argentine Govermnent with the United States. 

I have [etc.] 

F. J. Stimson 


[Inclosure — ^Translation] 

At the beginning: of your last session I had occasion to inform you of tho 
invitation extended by the Government of the United States to bo roprosentcid 
at the Pan American Financial Conference, which was to meet at Washington 
with the object of establishing closer financial relations among the nations of 
this continent. I also had occasion to inform you of the names of the rUilegates 
appointed to represent Argentina at that conference. 

Principally on account of the abnormal circumstances of tbo Aimn'ican 
Republics resulting from the Phiropean war, reacting on them by rt^ason of 
the close economic relations of the two continents and compelling tlu^in to 
resort first of all to their own resources, the conference could not fail to do ii 
valuable work. Its results will be felt in a future wldcli I presume to be 
almost immediate. 

That conference resolved that, in each of the nations repr<‘st^nied, a High 
Commission should be constituted, presided over l)y the IViinlsIer of Kinatu^e 
in each country, charged witli the study of the ]>est methods for obtaining 
uniform Pan American legislation in financial and commercial matttu's. ^rh(*se 
High Commissions were to send their representatives to this <aipital in Novaun- 
ber, 1916, to study the general bases for another financial conference^ to 0 (*cur 
in Washington in 1916, 

It was later decided to defer tlie meeting in Buenos Aires until April, 1916, 
and hence to postpone the Washington conference until 1017. 

The Representatives of the High Commissions of the H<wornl count ries mot 
In Buenos Aires on the date indicated and fulfilled their purpose. Their work 
assures the success of the labors of the conference to bo held in the United 
States next year. 

Turning from a consideration of the circumstances attendant upon the state 
war in Europe, the outlook for international Am<Ti<*an roIatlonB is very 
favorable. 

Last year we were honored with the visit of tbo Foreign Ministers of 
Brazil and Chile, who came in the name of their respective Governmentfl, to 
Join in our patriotic celebrations. This visit produced, as you know, the 
signing of the i)eace treaty of May 25, 1915, 

16 



AKGB^TmA 


17 


Conceived In the same spirit as the agreements latterly signed between the 
United States and the principal countries of the continent and with European 
nations, this instrument, which is at present before the Chamber of Deputies 
and already ratified by the Senate, is the last link in the chain which morally 
and materially united the three countries. 

Like the Bryan treaty, since last year awaiting the sanction of Congress, 
the document signed on May 25, by the Chancellors of Argentina, Brazil and 
Ch.le tends to push to the remotest corner of probability a conflict between the 
three Powers ; so that I can term it the culmination of an extended diplomatic 
effort destined to place upon an immovable foundation the friendship of three 
nations whose combined endeavor is a guarantee of peace and progress for 
this part of America, So that it is not hyperbolical to affirm that the in- 
vestigation commission for which it provides will be the materialization, as 
it were, of the triumph secured in the cause of peace against the thousand 
factors daily opposed to its ideals. 

The vote with which the Argentine Senate ratified the treaty and the 
approval of the Brazilian and Chilean Chambers are, it seems, a safe guarantee 
of the fact that the legislative bodies of the three nations have put a just 
appreciation on the work to which I have referred. 

The perfect understanding on general matters which is the result of the 
Pan American policy of the three Governments which are signatories to the 
treaty of May 25, was once more brought into prominence in connection with 
the deplorable state of affairs in Mexico, which unfortunately still continues. 

Congress will remember our action at the critical time when a difference 
between the United States and General Huerta, then in power in Mexico 
City, might have imperiled the peace of the continent. North American troops 
had already been landed at Vera Cruz and blood had already been spilt, 
when the Governments of Argentina, Brazil and Chile offered their mediation, 
happily accepted by the disputants. 

In the Niagara Palls conferences which followed, the mediation proved 
most successful. The Government of the United States renounce with re- 
gard to Mexico all claim to indemnization or satisfaction and, recognizing 
that the country had no constitutional head, agreed to recognize the pro- 
visional government which the Mexican factions should elect in place of the 
government of Huerta, voluntarily resigning. The better to effect this, the 
mediators, through from the first, in accordance with a traditional attitude 
of the Argentine Chancellery, they had declined any intervention in Mexican 
internal affairs and were not disposed to abandon that position, favored a 
meeting between Generals Carranza and Huerta, for an exchange of ideas 
as a solution of their differences. 

On September 16, 1914, the first part of the engagement entered into by 
the United States was materialized : the North American troops evacuated Vera 
Cruz. The other part of the engagement could not be carried out right away. 
The representatives of the two great Mexican factions could not agree and 
even when Carranza had taken possession of the City of Mexico, evacuated 
by Huerta, and had thereby entered into the exercise of the executive powers, 
the Zapalists and Villistas continued to war among themselves and against 
the occupant of the capital. 

During 1915, anarchy in Mexico reached a fearful height, followed by the 
ruin, misery and depopulation of the unfortunate country. It was a hecatomb 
which the conscience of America could not look upon indifferently, and the 
sympathy of ail the countries of the continent was aroused. 

Voicing this general sentiment, Secretary Lansing, the new Secretary of 
State of the United States, called a meeting of the Ambassadors of the 
A. B. 0., with the three senior American Ministers at Washington (who 
proved to be the Ministers of Uruguay, Bolivia and Guatemala), inviting 
them to unite in a Fan American effort to solve the Mexican problem. 

Faithful to our policy of nonintervention, so many times reiterated, the 
Argentine Ambassador at this meeting and subsequent ones from the first 
sustained his conviction that the pacification of Mexico was a thing to be 
effected solely through the action of Mexicans and that, without any outside 
intervention, only a government recognized by the chief Powers could bring 
about that result and secure happiness to the unfortunate country. Others 
shared this opinion with him. 

In that conviction and in the belief that the lack of a responsible inter- 
national medium added not a little to the want of security for the life and 



18 


FOKJBTGN EELATIONS 


propertv of the Mexicans themselves and of strangers resident in the country, 
the conference decided forthwith to limit the scope of its action to S('curmg 
recognition for a government which could furnish the securities nocossary, 
refraining entirely from interference with the Mexican factions and from 
bringing pressure to bear upon any of them. 

The conference having resolved to accept whatever political situation might 
ensue from this step, from the point of view of the physical and moral possi- 
bilities which the government to be so chosen might oft'er in guaranioe of the 
interests of all the inhabitants of Mexico, two paths to the (lesirc<l goal lay 
before them. They might have issued a call to all the warring factions to 
come to an agreement to appoint a government to ho recognized or which 
might be accorded recognition motu propno, or, if an agrcHnnoiit were im- 
possible, appeal to the persons constituted in authority who would actually 
retain power in the capital, with the greater probability of prevailing over 
the other parties. 

One compromise and another was tried. Personally and unofiicially each 
one of the members of Mr. Lansing’s conference ohered his good services to 
the Mexican ‘bosses,’ without result This means having been nliandoned, 
the confei*ence was forced to adopt the second and on September 18, 1010, 
concluded its sessions, affirming the necessity for some responsible authority, 
but leaving each Government free to judge for itself of the capa<*ity of any 
one of the Mexican parties to fulfil the duties of Government before the world 
and free to recognize such a government when it deemed it most opportune. 

In view of this resolution and in accordance with simple and inevitable 
facts, the Argentine Ambassador, in accordance with instructions from his 
Government, on October 19, last year delivered the formal rccognit if)ii by 
the Argentine Government of General Carranza as provisional presi<lent of 
Mexico. 

Other Powers had been before hand with us in this; they, like ours(*lves, 
had doubtless believed that this procedure was necessary if the <^iun trios of 
America were to help, even indirectly, in the pacification of the sister State. 

We have now only to hope Uiat a moral force and an international autliority 
such as have been vested upon the present government of IMexico througb 
recognition, will bring the country the peace which we all have so ardoutly 
desired for her. 


INTERNATIONAL HIGH COMMISSION ON TTNIEORM LEGISLATION, 
CREATED BY THE FIRST PAN AMERICAN FINANCIAL CONFER- 
ENCE; * FIRST GENERAL MEETING. DRAFT TREATY PRO\riDING 
FOR AN INTERNATIONAL GOLD CLEARANCE FOND 

File No. 810.51/517 

The Secretary of the Treasury to the Secretary of State 

Treasury DEPAUTMKN'r, 

Washington^ Fehmary /<V, WIG, 

Mt Dear Mr. Secretary: With reference to your Icttc^r ^ of the 
twenty-first of January, in which you discuss the neci^ssity for fully 
informing the State Department of the work carri(‘<l out under the 
recommendation of the Pan American Financial OonfenuuT., 1 am 
happy to set forth briefly at this time the chief •points in ('ontuudion 
with this work that will be of interest to the Departiaont of State, 
As you are aware, the International High Commission in tlic re- 
sult of the First Pan American Financial Conference. 'Unit confer- 
ence clearly realized that some sort of permanent stamUng com- 
mittee would have to be chosen for the purpose of preparing the 
work of future conferences, as well as for the more important pur- 


iFor. Rel. 1915, pp. 20 and 3810. 
^ Not printed. 




AiLGENTOTA. 


19 


pose of making effective its own specific recommendations. One may 
sum up these recommendations by saying that the Financial Confer- 
ence urged the adoption of a program of sustained and persistent 
public action looking to the removal of positive or negative obstacles 
to the promotion of closer financial and commercial relations between 
the American Eepnblics. The conference found that the obstacles 
to the strengthening and expansion of inter- American trade relations 
consisted now in the conflict of various systems of administrative law 
or fiscal reflations; now in fundamental disagreements between dis- 
tinct juristic theories and traditions; again in the friction between 
the technical rules providing for the adjustment of differences in 
questions so highly specialized as those of literary property, patents 
of invention and trademarks; or, finally, in the fundamental nef - 
tive obstacle or an absence of real cooperation between the financial 
(‘ommunities of the several republics. These obstacles, the confer- 
ence thought, should be subjected to searching study by groups of 
financial, legal and technical experts, organizS on an international 
basis and working in close cooperation, both by correspondence and 
in conference assembled. The Financial Conference, therefore, sol- 
emnly recommm ded the creation of an international commission con- 
sisting of national sections, each of nine members, and each pre- 
sided over by the Minister of Finance or Secretary of the Treasury. 
This commission was to devote itself to the study of those problems 
and to evolve practical methods of resolving them. The concensus 
of opinion as to what in each case would best serve common interests 
would finally be formulated into concrete measures of substantial 
harmony and unity of pui‘pose, such measures respectfully to be sub- 
mitted to the consideration of the legislative bodies of the participat- 
ing republics. 

All the governments that were represented at the First Financial 
Conference have named their representatives. It is true that not 
all of them have named sections of nine men ; Colombia will be rep- 
resented apparently only by one, and Honduras only by three com- 
missioners; and in a few cases the Ministers of Finance will not 
serve as Chairmen. I arrP*happy to enclose a list of members of the 
various sections, as known to us at this time.^ 

The va)*ious sections have begun their work and are exchanging 
preliminary views upon the topics proposed for their consideration 
by the Financial Conference. Some of the sections have added new 
topics to the original list submitted by the conference, and among 
these should be numbered the United States Section, which has 
recommended the study of the following topics: 

1. Necessity of better transportation facilities between the Amer- 
ican Republics, and means ox securing them. 

2. Improved banking facilities; extension of credits; financing of 
enterprises, public and private. 

3. Stabilizing of international exchange. 

i. Arbitration of commercial disputes. 

5. Negotiable instruments; bills of lading; warehouse receipts, 

6. Umformity of customs regulations and classification oi mer- 
chandise. 

7. Postage rates; parcel post and money order facilities. 


*Not printed. 




20 


POBBIGK EELATTONS 


8. Cable rates; wireless telegraphy. 

9. Commercial travelers and their samples. 

10. Patents, trademarks, and copyrights. 

Several special reports and memoranda have been prepared upon 
these topics, and othei-s are in process of prepai-ation. Enclosed will 
be found a full set of those reports so far printed.- The views of the 
United States Section upon these topics have been incorporated in 
a brief memorandum, a copy of the Spanish version of wliieli is 
enclosed herewith. 

While to a large extent the preliminary work of pre])aring-fo!- tlie 
April meeting of the commission has been carried out by the stall' 
of the United States Section of the commission, under luy direetion, 
it was imderstood from the first that the responsibility for tlie 
organization of the conference rested with the Argentine authorities. 
Recently it has been made perfectly clear by cori-ospondencc* I)ctwoen 
the Argentine Government and this Department, tlirough the iisiial 
diplomatic channels, that we would most heartily cooperate, in facil- 
itating the work of the Argentine Section of the commis.sion in pi-o- 
paring the program, thus insuring a succesKful meeting. Such 
memoranda and relevant correspondence a.s ^\•e. liave receiv(Hl fr(»ni 
the various Latin American Sections of the coiuiuissinn we are has- 
tening to put at the disposal of the Ai'gontine Seclion of the <'oin- 
mission, in order that it may be fully iniPormed of all that has 1 aken 
place up to this time. 

The United States Section will depaif for Buenos Aires on iMaiaih 
8, making very brief stops at Rio do Janeiro and Montevideo; after 
its attendance at the sessions of the conference it will return to tliis 
country by the west coast. In order that the members of tho s(><“tion 
might enjoy a status no less definite than that which had been given 
to the other sections of the commission by their respective govern- 
ments, the Congress thought it desirable to approve and confii’in their 
appointment by the Secretaiy of the Treasury and to provide means 
adequate to enable them to carry on their woi'k. 'I'lui n(*<'e.ssary 
authority and appropriation were pi’ovided for in an act aj>prove(l 
February 1 . _ ^ 

It will be a gratifying addition to the resource.s of the UiiiU'd 
States members of the commission to be able to count upon tlu*. heart- 
iest assistance of the United States diplomatic and consular rejtre- 
sentatives in the republics through which they may have (X’casion to 
pass; and I Imow that you will be happy to instnud these ropi-e- 
sentatives accordingly. 

From this time on I shall retjuest you, as occasion arises, to Iks 
good enough to communicate to the representative-s of tlu^ govern- 
ments participating in this work various announcements of a general 
character, in order that the.se diplomatic ropresent)itiv<*s may bo 
fuUy informed of what has boon done, or of what i.s conteiriplatisl. 
It will be perhaps of some general advantage to them to nu-eive 
from you a brief memorandum embodying the points contained in 
the present comraimdcation. 

In all these matters, my dear Mr. Secretary, I know that the 
members of the United States Section of the commission and I will 


*Not printed. 



AEGEKTINA 


21 


continue to enjoy the hearty support and cooperation of yourself and 
of the Department of State ; and I am confident that this will be of 
the most substantial assistance in the furtherance of our work. 
Very faithfully yours, 

W, G. MoAdoo 


Pile No 810.51/D74 

The OTtarge Affaires of Argentina to the Secretary of State 

Embassy of Argentin'a, 
Washington^ Fe'bruary 1916. 

Your Excellekgy : I have the honor to inform your excellency 
that I have received telegraphic instructions to transmit to your 
excellency’s Goveriment the invitation of the International High 
Commission which is to meet in Buenos Aires on April 3 next, that 
it be represented at said meeting, and to express to your excellency 
the great interest that the United Stales be so represented. 

I am further charged to inform your excellency that the delegates 
who may be appointed on behalf of the United States will be re- 
ceived as guests of the Argentine Government. 

Accept [etc.] 

F. M. Quintana 


File No. 8X0.51/498 

The Secretary of State to the Charge Affairs of Argentina^ 

Department of State, 
Washington.^ February ^5, 1916. 

Sir : I have the honor to transmit herewith, at the instance of the 
Secretary of the Treasury, a collection of reports on a number of 
topics for discussion at the coming International High Commission 
at Buenos Aires, which, it is thought, will be of interest to the 
diplomatic representatives of the Latin American countries partici- 
pating in that conference.- 
Accept [etc.] 

For the Secretary of State : 

Frank L. Polk 


Pile No. 810.51/674 

The Secretary of State to the Charge d? Affairs of Argentina 

Department of State, 

Washington.^ March 7, 1916. 

Sir : 1 have the honor to acknowledge the receipt of your note of 
the 23d ultimo, extending to the Government of the iJnited States 
the invitation of the International High Commission, which is to 
meet in Buenos Aires on the 3d of April, to participate in that 
meeting. 


*Not printed. 

* The same to the other mlseloiis of Latin America. 


106413“-— PE 1916 1 


22 


POBBIGN EELATIONS 


You are so good'as to further inform me that the delegates who 
may be appointed on the part of the United States will be received 
as guests of the Argentine nation. 

The Government of the United States, in carrying luit I he plans 
of the recent conference of American financiers at this capital, is 
glad to avail itself of the opportunity afforded for further dis- 
cussions upon topics of such vital iinportance to tlio Governnieiils ol 
the Americas, and the courteous invitation of the Inferuat.ional High 
Commission is accepted with the prophetic feeling that great re- 
sults will ensue from this important conference. 

The American Section of the commission will embark on its 
mission from Hampton Roads on board the U. S. S. on 

tlie 8th of March, the personnel of the party being as follows: 

The Secretary of the Treasury, Chairman, and IVIrs. Me At loo. 

The Assistant Secretary of the Treasury, and Mrs. Peters. 

United States Senator Duncan U. Fletcher. 

Mr. Paul M. Warburg, of the Federal Reserve, Board. 

Mr. and Mrs. Samuel Untermyer, of Now York City. 

Mr. John IT. Fahey, President of the United States Chamber of 
Commerce, and 

Mr. Archibald Rains, of San Francisco, as delegates. 

Mr. J. Brooks B. Parker, and 

Mr. C. E. McGuire, Assistant Secretaries General of the Section, 
will accompany the party, as will also 

Mr. G. A. Sherwell and 

Mr. H. N. Branch as interpretera and translators, and 

Mr. Claud de Baun, and 

Mr. S. J. Katsberg, and 

Mr. T. A. Gray as stenographers. 

Richard Greene will be messenger to the party. 

The American Section purposes to reach liuenus Aires on or about 
the 31st of March. 


Accept [etc.] 


RoUKUT L.\JSSIN(} 


File No. 810 51/51T 

TI>£ Acting Secretary of State to Minktei' donzales* 

Depaktmknt or Sta'i’m, 
'Washington^ Alaroh lUlS. 

Sir: The United States Section of the International High (lom- 
mission sailed on March 8 on board the U. S. S. Tennemce for 
Buenos Aires to attend the Conference which will eouvimc in that 
capital on April 3. As you will see from the appended li.st of the 
members of the party the Secretary of the Treasury is a(!comi)ttnying 
the delegation as Chairman. ' ’ ■ ‘ 

At the conclusion of the International High Commission at Buenos 
Aires the American Section will make its return voyage to the 
United States up the west coast of South America, and plans to 
stop at Habana about May 4 for a visit of one day. 

* Similar Instructions to tlio American Ministers at Panama* Quito, and 



AEGEKTHSrA 


23 


You will inform the Government of Cuba of the proposed visit 
to that country of the American Section of the International High 
Commission, and do what you properly can to facilitate the landing 
of the party and to make their visit a successful and pleasant one. 

I am [etc.] 

Frank L. PoiiK 


Pile No. 810.51/597 

Ambassador Stimson to the Secretary of State 

[Telegram] 

American Legation, 
Buem)s Aires^ April S, 1916. 

High Commission opened in Chamber of Deputies. Speech by 
President; response by Secretary McAdoo and other presidents of 
commissions, alphabetically. Twenty countries. Great eclat. All 
diplomats present, including those of belligerent countries. 

Stimson 


File No. 810.51/619 

The President of Argentina to the President 

[Telegram — ^Transla tion ] 

Buenos Aires, April 15^ 1916. 

The Conference of the High Commission on Uniform Legislation 
has closed its session after ten days of earnest labor exerted in an 
atmosphere of most cordial collaboration and community of purpose. 
I conhdently hope that that meeting of distinguished jurists and 
financiers will be prolific of good for the nations of America and will 
strengthen the ties of race, sympathy and reciprocal interests that 
bind them and watch over the high destinies which human evolution 
has in store for the New World. 

I offer to Your Excellency my sincere congratulations on the grand 
success achieved with the highly disinterested and open cooperation 
of your coimtry’s delegation. 

ViCTORiNO DE LA Plaza 


File No. 810.51/619 

The Present to the President of Argentma 

[Telegram] 

Washington, May 17, 1916. 

Tour Excellency’s friendly message of the 16 th of April has just 
been brought to my attention and I hasten to express my deep gratifi- 
cation at the successful outcome of the recent International High 
Commission, and to extend to you, the Government and the people 
of the Argentine nation, sincere appreciation of the hearty reception 
extended to the American delegates and tlie cordial hospitality which 
greeted them at every hand. 

The American ddeeates have returned home with memories of 
their visit as delightfiu as those which were left with us at the con- 



24 


FOREIGN BBIJ^TIONS 


elusion of the International Conference at Washington, and I assure 
Your Excellency that these exchange visits have evidenced most 
strongly the traditional friendly ties and coinmon interests existing 
between your flourishing country and the United States of America. 

Woodrow Wilson 


PUe N(x. 810 51/068 

The Secretary of State to Amia^ssador Stimson^ 

Department of State, 
Washington^ June 6^ 1916. 

Sir : The United States members of the International High Com- 
mission have returned home deeply impressed with the cordial treat- 
ment which they received in Argentina, evidencing as it did the 
friendly regard entertained for the United States in that Republic, 
as well as the interest which the Government and people of Argen- 
tina took in the important questions of financial and commercial inter- 
course which the High Commission was called upon to consider. It 
is, therefore, desired that you express to the Government of Argen- 
tina the appreciative thanks of the Government of the United States 
for the hearty welcome extended to the Commissioners by the Gov- 
ernment and’ people of Argentina and the generous hospitality ac- 
corded to them throughout their visit. 

I am [etc.] 

For the Secretary of State : 

John E. Osborne 


Pile No. 810.61/678 

Department of State, 

Washington^ June 29^ 1916. 

To the Diplomatic Offioers of the United States in Latin American 
countries 

Gentlemen : In order to make the direction of its work as effective 
as possible, the International High Commission which met at Buenos 
Aires in .^ril last adopted a resolution providing for a Central 
Executive Council whose du^ it shall be to centralize and coordi- 
nate the. labors of the Commission, to keep the several sections in 
constant touch with one another, and to carry out the conclusions of 
the International High Commission and the Pan American Financial 
Conferences, and to prepare the program, reports, and all other ma- 
terial necessary for the holding of the second meeting of the Inter- 
national High Commission.” The executive officers of the United 
States Section of the High Commission have bexjome president, vice 
president and secretary general of this Council. 

As one of the first steps in carrying into effect the important and 
constructive recommendations of the International High Commission 
at its Buenos Aires meeting, the office of the Central Executive Coun- 
cil desires to obtain the most accurate and recent information with 
reference to the status of national legislation on negotiable instru- 
ments and commercial paper. To this end the Central Executive 
Council, through the Secretary of the Treasury, has requested the 


« The same, mutaUs tMttandia, to the American missions in the other countries visited 
by the United States delegatleii. 




ABG-EimN'A 


25 


Secretary of State to instruct the Diplomatic Officers of the United 
States in Latin American countries to send at as early a date as con- 
venient a full statement of the legislation in each country with ref- 
erence to 

(a) Bills of exchange; the status of legislation ratifying the 
Hague Convention on Bills of Exchange of 1912; 

^b) Checks; 

(c) Bills of lading; 

(d) Warehouse receipts. 

Hie International High Commission is interested in these subjects 
chiefly from the point of view of their character as negotiable instru- 
ments, and while information relative to customs regulations and 
other financial machinery involving, for instance, bills of lading, 
will be noted with interest, the Commission are especially anxious 
to secure a summary of existing law or any proposed changes. In 
case the diplomatic representatives of the United States desire to 
forward commercial codes or any other printed matter, it would be 
of great assistance to the Central Executive Council if such represen- 
tatives would inquire of competent legal authority as to the present 
effect of these laws. 

It is not desired, however, that the diplomatic representatives 
should incur any expense in this connection. 

The Department would be pleased to have you comply with the 
wishes of the Central Executive Council as far as practicable. 

I am [etc.] 

For the Secretary of State: 

Alvey a. Adee 


FUe No. 810.51/686 


The Secretary of State to the OhargS d^Affairee of Peru^ 


At the instance of the Secretary of the Treasury the Department 
of State transmits herewith for the information of the Gharg6 d’Af- 
faires of Peru a copy of a Spanish translation of the Uniform Ware- 
house Receipts Act now prevailing in fifteen States of the Union. 
By virtue of a resolution of the Buenos Aires Conference, the Central 
Executive Council is directed to circulate material looking toward 
uniformity of national laws governing negotiable instruments. 

Department of State, 

Washington^ July S, 1916. 


Pile No. 810.61/695 

The Acting Secretory of State to the Arribassador of Argentina*^ 

Department of State, 
Washington^ August 5, 1916. 

The Acting Secretary of State presents his compliments to his 
excellency the Ambassador of the Argentine Republic and, at the re- 


• The same, mutaiie tnuiandU, to the other Latin American members of the IHploiratic 
Corps at Washington. 

f The same, mutatis mutandis, to the other Latin American missions at Washington. 



26 


FOEKCfN BBLATTONS 


quest of the Secretary of the Treasury, has the honor to enclose for 
the Ambassador’s information two brief printed memoranda^ sum- 
marizing the accompli^ments of the meeting of the (Central Execu- 
tive Council and of the United States Section of the International 
High Commission on the fifteenth of June. 


[Inclosure 1] 

MEETING OF THE CENTBAL EXECUTIVE COUNCIL OF THE iNTEBNATIONAli 
HIGH COMMISSION 

Thuesdat, Jme 15, 10,30 to 12 a. m. 

The Central Executive Council at its meeting to-day discussed the relation 
between itself and the twenty national sections of the International High 
Commission. It took up, first, the important question of securing ratification iu 
those countries which have not yet ratified them of the — 

(a) Patent, trademark, and copyright conventions of 1910; 

(&) Pecuniary claims convention of 1910; 

(c) Resolutions on customs modification of 1910. 

The President of the Commission announced that he would send to the State 
Department a letter outlining the work of the International High Oominissiou 
explaining its future organization and its relation to the various national sec- 
tions, and assuring the State Department of its desire to work in all matters 
that are absolutely of a diplomatic character through the State Department. 
Mention would be made of the fact that if the State Department has no objec- 
tion the president and ofideers of the International High Commission would 
communicate directly with the several national sections on all matters of a 
purely international character. In this letter, too, attention would be called 
to those countries which are delinquent in ratification of above-mentioned con- 
ventions and the State Department would be requested to send out an identical 
letter to the several embassies and legations in question, asking for immediate 
and specific information as to the status and prospects of such ratifying legis- 
lation. 

On receipt of the information requested in this letter to the State Depart- 
ment the Central Executive Council would know what steps further to take 
in the matter of securing this desirable result of ratification. 

The question of gold clearance fund treaties was postponed until after dis- 
cussion with Mr. Warburg could be held in the afternoon session. 

With reference to the extension of arbitration, it was decided to send a letter 
to the Chamber of Commerce of the United States dwelling upon the impor- 
tance of that organization’s endeavoring to secure favorable action by other 
Chambers of Commerce than that of Buenos Aires in this regard, and emphasiz- 
ing the desire of the United States Section and of the Central Executive Coun- 
cil to cooperate in every way. With reference to controversies between Govern- 
ments and alien corporations, progress was to be secured through the ratifi- 
cation and putting into operation of the conventions on pecuniary claims. 

Witli reference to the work of the Central Executive Council in Uie field of 
negotiable instruments, it was felt that the first matter to take up was to ^ve 
the widest circulation to the Federal law on bills of lading, the adoption of 
which, under the name of “ Pomerene Bill ”, may be confidently expected within 
a short time. Subsequently other matters would be taken up, such as the uni- 
fication of South American laws on Bills of Exchange and Cheeks, on a basis 
of the Hague Conference Uniform Law of 1912, as amended at Buenos Aires, 
In the meantime as much information as possible would l)e circulated in South 
America regarding the effect of such adoption and witli reference to other 
branches of the law of negotiable instruments, such as warehouse receipts. 

Emphasis was laid by the members present upon the necessity of putting be- 
fore the public, as well as meetings of specialists, the fullest possible explana- 
tion of the work of the High Commission now or in the future. 



ABGENTINA 


27 


[Indosnre 2] 

MEETING OP THE UNITED STATES SECTION OP THE INTEENATIONAIi HIGH COMMISSION 

Thuksdat, JuTie 15, to i p. m. 

Present: The chairman, vice chairman, and Messrs. Fletcher, Peters, War- 
burg, Fahey; the secretary general, assistant secretaries general, and Mr. 
Branch. 

The secetary opened the meeting with a brief summary of the work done at 
the meeting of the Central Executive Council, held on the morning of the same 
day. He then passed on to open a discussion with Mr. Warburg as to the op- 
portuneness of action at this time with reference to gold clearance fund treaties. 
Mr. Warburg’s opinion was that at this moment the State Department might 
well begin its inquiries and even the preparation of a draft to cover the situa- 
tion. At the secretary’s suggestion Messrs. Warburg and Moore agreed to draft 
a tentative plan for submission to the State Department. 

The secretary general then announced the form that the report would take, 
as follows : 

Part one. Report of United States Section to the President, with an appendix 
of English translations of committee reports and resolutions. 

Part two. Official English version of journal of sessions, with memoranda 
attached. 

This was approved by the Section and its preparation along those lines 
agreed to. 

Individual reports from the members of the Section with regard to the work 
recommended by them on their several topics were then received. The first 
was made by Senator Fletcher ; he urged that the Post Office Department be 
immediately invited to take part in the conference at Montevideo. On the 
motion of the Chairman the Secretary General was authorized to notify the 
Postmaster General of the action taken at Buenos Aires and to urge that pro- 
vision be made for the participation of the United States in the Montevideo 
Congress. 

With reference to telegraph facilities and rates, the Chairman announced 
that he would take up in individual conference with the president of the 
Western Union Telegraph Company and Central and South American Telegraph 
Company the several questions relative to the improvement of telegraphic com- 
munication and the reduction of telegraph rates. 

With reference to the action to be taken upon the recommendations of the 
Committee on Customs Legislation, Assistant Secretary Peters pointed out that 
a large number of these recommendations would call for administrative action 
only. The resolution of the Fourth International Conference of American 
States at Buenos Aires, 1910, with regard to customs documents and regulations 
was discussed, and on motion of the Secretary the Secretary General was in- 
structed to learn whether the State Department could not press some of the 
points involved in this resolution for immediate ratification and adoption. A 
letter to the Ministers of Finance was authorized, in which indication would be 
given that the commercial statistics of the United States — ^which are published 
by the Department of Commerce— would henceforth have all quotations given in 
the American Franc (Jan, 1, 1917), With regard to the commercial nomencla- 
ture, it was pointed out that this was a very great task, and that In some re- 
spects a brief glossary might be better. For the present, action upon this matter 
would he withheld until formal notice could be given to the Governing Board 
of the Pan American Union. 

Mr. Warburg said that until the amendments to the Federal Reserve Act now 
pending in the Senate should have been adopted, no discussion of the improve- 
ment of credit facilities in Central and South America would be practical. His 
opinion was that emphasis should be put upon the passage of these amendments 
and that efforts should be engaged in to secure a treaty covering the clearance 
fund system. It was suggested that Mr. Warburg give a detailed account of the 
proposed American Franc to the Bulletin of the Pan American Union. 

In considering commercial travelers and the regulations governing them, it 
was decided to prepare a treaty at once for submission to Argentina. Mr. 
Fahey announced that aU the preliminary work with regard to arbitration 



28 


rORBIGN BBLATIONS 


of commercial disputes had been completed and that an agreement with 
Urnguay would soon be entered into. It was snggestcd that Mr. Fahey and 
Dr. Bo we discuss the possibility of adapting the Pecuniary Claims Convention 
of 1910 to meet aU problems arising out of litigation between Governments and 
foreign corporations. Authorization was given to ask the State Department 
to urge through diplomatic channels the early ratilication of the Pecuniary 
Claims Convention. 

At this point Mr. Francisco J. Yands, Assistant Director of the Pan Amer- 
ican Union, arrived and remained mth the Section until the close of its meet- 
ing. Mr. Yands discussed with the Section the extent to which the Union could 
cooperate in carrying on the work of a revision of the nomenclature and the 
other points under discussion. It was proposed to him that the Bulletin of 
the Union publish a quarterly or semiannual supplement dealing with labor 
and social welfare legislation; in this way national sections of the Inter- 
national Labor Association could be formed in South America, It was also sug- 
gested that the Union take part in a great movement to survey the natural 
resources of all the American Republics, with careful regard to mineral de- 
posits; such a survey to serve as the basis for uniformity of legislation of 
methods of classification and analysis. Mr. Yands declared that the Union is 
willing to cooperate in all this work to whatever extent its financial limitations 
would allow. On the motion of Mr. Moore, authorization was given to notify 
the Governing Board of the Pan American Union in a formal manner of the 
action taken at Buenos Aires, and of the opinion of the United States Section 
with regard to its realization. 

Secretary McAdoo urged that the Department of Commerce and the Fed- 
eral Trade Commission he invited to consider how far each might contrihute 
to this work on the part of the Union, and the Secretary General was author- 
ized to invite suggestions from these bodies and others with regard to this 
matter. 

Recurring to the question of pecuniary claims, Mr. Fahey pointed out that 
no code of procedure existed and that until one should have been drafted it 
would be of no help merely to have the general principle ennneiatod in the 
form of a convention. The Section thought, however, that the first stop was to 
secure ratification of the Convention of 1910. Mr. Fahey’s query — whether a 
standard code would be necessary — ^was answered by Dr. Moore to the effect 
that The Hague Convention of 1907 might serve as the general code, together 
with any special provisions as to procedure that might he desirable. Such 
provisions are allowable under The Hague Convention or under the Pecuniary 
Claims Convention of 1910. 

After some slight discussion of the question of diplomatic action on the part 
of the United States to mitigate the situation of the exporters of cereals In 
Argentina— a discussion called forth hy a telegram from the correspondent of 
La Prensa — 

The meeting adjourned subject to the call of the chairman. 


File No. 810.61/706 


The Acting Secretary of State to the Amh<issador of Argentina^ 


Department of State, 

Washington^ Octoher 1916. 

Sir : I have the honor to transmit herewith for your infox’mation 
a copy in English and one in Spanish of the First Edition of the 
Committee Reports and Resolutions, adopted at the first meeting of 
the International High Commission at Buenos Aires in April last.^ 

A number of these reports have been sent to the Minister of 
Finance of Argentina for such use as he may deem proper to make 
of them and I shall be pleased to furnish you with additional copies, 
should you desire them. 

Accept [etc,] 


Frank L. Polk 


*Not printed. 

seme, tmtatu mutandis, to the other Latin American mlssiona at Waehingtoa* 



ARGENTIlSrA 


29 


FUe No. 8ia.51/785a 

The Sed^etary of State to ArribasBador Stvmson^ 

Department of State, 

Washington^ December 1916. 

Sir : I enclose herewith fifteen copies of a draft treaty ^ provided 
for an international gold clearance xund, together with fifteen copies 
of a memorandum explanatory of the same. 

This draft has been prepared by the Central Executive Council in 
accordance with the resolution of the first general meeting of the 
International High Commission at Buenos Aires in April last. The 
Latin American commissioners attending that meeting are already 
familiar with the underlying principles of this project and the pur- 
pose of the accompanying memoranda is to refre^ the minds of those 
commissioners as to the details of the project, and to explain it to 
those to whom it is wholly new. 

On the basis of the discussion between the several National Sections 
and the Central Executive Council, which will undoubtedly take place 
when adequate study shall have been given to these documents, the 
Commission as a whole will evolve the final form of treaty to be duly 
submitted to the respective DepartmenLj of State and of Foreign Eo- 
lations for negotiation in the usual manner. 

On behalf of the Central Executive Committee you are requested 
to take up the questions under discussion in the enclosed memoranda 
and the draft treat;;^ informally and unofBlcially with tlie Minister of 
Finance of Argentina, through the proper channel, and with such 
other authorities in the country to which you are accredited as may 
seem proper, with a view to obtaining an expression of their views as 
to the probability of acceptance of the propositions by the Govern- 
ment or that country, and any other opinions upon the subject which 
might be of value to the Central Executive Council. 

You are further requested to inform the Minister of Finance that 
the technical aspects of the subject are to be taken up by the respec- 
tive Ministers of Finance or other appropriate members of the Inter- 
national High Commission directly with the Central Executive Coun- 
cil, and you will please inform the Minister of Finance that the Cen- 
tral Executive Council will deeply appreciate an adequate expression 
of his views upon these technical aspects. 

The Department would be glad to receive from you for the in- 
formation of the Council a comprehensive report upon the questions 
herein dealt with at the earliest date. 

I am [etc.] 

Kobert Lanstno 


* Not printed. 

*The same, mutatis mutandis, to the other American missions in Latin America. 




AUSTRIA-HUNGARY 

DEATH or EMPEROB ERAHCIS JOSEPH AND ACCESSIOIT OE KARL I 

Pile No. 8C3.001P85/8 

The Charge d’Affaires of Austria-Hung a^'y to the Secretary of State 

[Translation] 

Austro-Hungarian Embassy, 

W a$hington^ Novemter 2^, 1916, 

ExaELLENcr: I have the sad duty of informing yoin* excellency 
that His Imperial and Koyal Apostolic Majesty Franz Joseph I, 
my most gracious master, died at 5 minutes after 9 o’clock in the 
evening of November 21, after a short illness. I am instructed to 
request your excellency to bring this sad news to the knowledge 
of His Excellency the President of the United States. 

Accept [etc.] 

E. Zwiedinek: 


PUe No. 863.0O1P85/9 

The EmperoT to the President 

[Telegram] 

Berlin, via Satville, November 1916. 

With deepest sorrow I hasten to inform Your Excellency that my 
beloved grand-uncle, His Imperial and Royal Majesty, Francis 
Joseph Roemisch I, expired last night after a short illness. I feel 
confident that Your Excellency and the American nation will 
sympathize with the great loss that Austria-Hungary has sustained 
by the death of His Majesty. 

Charles 


Pile No. S63.001P86/8a 

TTie President to the Emperor 

[Telegram] 

The White Hottse, 
'Washington., November 1916. 

I beg of Your Majesty and the Imperial and Royal Family to ac- 
cept the sincerest sympathy of Mrs. Wilson and myself in the great 
loss which you have sustained, in the death of your illustrious uncle, 
for whom I entertained sentiments of high esteem and regard. I 
also extend to Your Majesty the condolences of the Government 
and people of the United States, and convey to you my best wishes 
for your personal well-being and prosperity. 


30 


WooDHOw Wilson 



AtrSTBU-HTTNGAET 


31 


FOe No. 863.001F85/8b 

The Secretary of State to Amibassotdor Penfield 

[G?elegram] 

Depabtmbnt of State, 
Washingtori, November 1916. 

1427. The President has sent a message of sympathy to Emperor 
Charles Francis Joseph. Extend sincere condolences of President, 
Government, people of the United States, to the people of the Dual 
Monarchy in death of their late venerated Emperor and King, en- 
deared to them by his nobly borne private griefs and the wisdom 
and benevolences of his long^nd eventful reign. 

Extend to Minister for Foreign Affairs my personal sympathy 
in this great loss which has been sustained by Austria-Hungary in 
the death of His Majesty. 

Lansing 


FUe No. 863.001F85/8 

The Secretary of State to the Charge dP Affaires of Austria-Hv/ngary 


Department of State, 
Washington, November £3, 1916. 

Snt : I have had the honor to receive with great regret your note 
of yesterday by which you officially communicate to me the sad in- 
telligence of the death of His Majesty Franz Joseph I, Emperor of 
Austria, King of Bohemia and Apostolic King of Himgary, at five 
minutes past nine o’clock on the evening of November the twenty- 
first. 

It has been my pathetic duty to bring promptly this information 
to ihe knowledge of the President who, greatly shocked by the demise 
of this venerable and illustrious ruler for whom he entertained high 
esteem and regard, has conveyed directly by telegram to Emperor 
Karl Franz Joseph and the Imperial and Royal Family his own 
sincere condolences and those of the Government and people of the 
United States in this great grief which has come upon the Dual 
Monarchy, and extended to the new Emperor his best wishes for his 
personal well being and prosperity. 

I have in like manner offei^ to the Minister for Foreign Affairs 
of Austria-Hungary the expression of my own personal empathy 
in the great loss which has been sustained by Austria-Hungary. 

Accept [etc.] 

Robert Lanseng 


FUeNo. 863.0O1F86A 

The Secretary of State to Ambassador Penfield 

[Telegram] 

Department of State, 
Washimgton, November £8, 1916. 

1428. The Piresident, deeixing to show the high respect due_ to the 
memoxy of the late Emperor and King, has invested you with the 



32 


FOBEIGN BELATIONS 


rant and character of a Special Ambassador to represent him and 
the people of the United States at funeral obsequies. So notify 
Foreign Of3.ce. Send appropriate wreath in President’s name. 

Lansing 


FUe No. 868.0(UF85/18 

Ambassador Pen-field to the Secretary of State 

[Telegram] 

American Embasst, 
Vienna^ Novemhev 26^ 1916, 

1551. Department’s 1428. In reply to your message of condolence, 
which was received on the 25th instant, Minister for Foreign Affairs 
states: 

I hasten to request your kind intervention in order to express to Mr. Ijansiii^; 
and the Government of the United States my deep-felt thanks for this kind 
message of condolence. 

May I also request you to thank Mr. Lansing very warmly on my behalf 
for his personal sympathy, which I appreciate very deeply. 

Bukcan 

Penfield 


Pile No. 863.001F85/27 

ATribassador Penfield to the Secretary of State 
[Extract] 

No 2259 

American Embassy, 
Vienna^ December 1916, 

Sir: * ♦ ♦ On November 28 the new Emperor Karl I of 
Austria and King Karl IV of Hungary and the Empress-Queen Zita 
received the Ambassadorial Body — ^now reduced to hve members — at 
the Hofburg * ♦ * 

On November 30 I was again received at the Hofburg by the Em- 
peror and Empress, this time in my capacity of Special Ambassador- 

* * aii 

At three o’clock that afternoon the obsequies over the mortal re- 
mains of the sovereign, who had ruled longer than any mon'arch since 
Louis XIV, were held in the cathedral church of St. Stephen’s. 

* * * At the close the Emperor, Empress and a hundred or 
more royalties followed the hearse on foot to the Capuchin Church, 
whose crypt contains the coflBms of scores of Hapsburgs. In the 
march from the cathedral to the church the special representatives 
were given places immediately behind the Imperial Family. Presi- 
dent Wilson’s representative walked with the representative of the 
Pope. * * 

December 30 is the date fixed for crowning King Karl IV and 
Queen Zita at Budapest. * * * The new Crown Prince, born on 
November 20, 1912, is named Franz Joseph Otto. 

I have [etc.] 

Frederic C. Penfield 

BELEASE OF FRANK 0HILONI, AN AMERICAN CITIZEN. IM- 
PRESSED INTO THE ITALIAN ARMY AND TAKEN PRISONER 

{See Italy: liability to military service^ etc.) 



BELGIUM 


ABROGATION OF PROVISIONS OF CERTAIN TREATIES CONELICT- 
ING WITH THE SEAMEN’S ACT OF MARCH 4, 1915- — ^ACCEPTANCE 
OF THE ABROGATION BY BELGIUM, CHINA, DENMARK, FRANCE 
AND GREECE. STATEMENT BY BRAZIL OF STATUS OF TREATY 
PROVISIONS." 

File No. 711.0021/94a 

The Secretary of State to the American Legation at Brussels ^ 

I Circular telegram] 

Department op State, 

Washington^ April i, 1916, 

Endeavor obtain early reply to representations made in accordance 
with Department’s instruction May 29, 1915, regarding Seamen’s 
Act, approved March 4, 1915. Lansing 


BELGIUM 

PUe No. 711.5621/3 

Consul Osborne to the Secretary of State 

[Extract] 

No. 402 American Consulate, 

Eamre^ June 30^ 1916. 

Sir: I have the honor to transmit herewith enclosed a copy and 
translation of a letter to me from Baron Beyens, Belgian Minister 
of Foi^eign Affairs at Sainte Adresse, dated June 29, 1916, relative 
to the act to pi'omote the welfai^e of American seamen in the mer- 
chant marine of the United States approved March 4, 1915, and its 
effect on the conventional stipulations between the United States 
and Belgium and the former Independent State of the Kongo. 

This communication is in reply to Minister Whitlock’s letter to ’ 
the late Mr. Davignon, Minister of Foreign Affairs of Belgium, 
dated July 6, 1915. John Baud Osboenb . 


[Inclosure-— Translation] 

The Minister far Foreign Affairs to Consul Oslome 

Ministry for Foreign Affairs, 

Havre, June 29, 1916. 

Sir: As you are aware, his excellency Mr. Brand Whitlock was so good as 
to communicate to Mr. Davignon the text of a law relative to the merchant 
marine, approved by the American Congress March 4, 1915. 


» Continued from For. Rel. 1915, ^3. , , , ^ ^ -r 

2 Sent also to Ibe Embassies at Rio de Janeiro, Vienna, and Madrid, and the Lega- 
tions at Peking, Copenhagen, Athens, The Hague, Christiania, and BucharesL 


33 



84 FOllBIGN BEIATIONS 

That law entrusts the President of the United States with the duty of ter- 
minating the provisions of the international treaties to which the United States 
are a party, which are not in agreement with the new regime which it 
establishes. 

His excellency pointed out, as coining within this purview, Articles 11 and 
12 of the Consular Convention concluded March 9, 18S0, between Belgium 
and the United States, as well as Article 5 of the Treaty of Amity, Commerce 
and Navigation signed January 24, 1891, between the Independent State of 
the Kongo and the United States. Nevertheless, rather than denounce the 
two conventions, the American Government suggests to the Government of the 
King to terminate, by agreement, these three articles and leave in force the 
other provisions of the treaties. Furthermore, it proposes to put on record 
the agreement reached on this point by an exchange of notes; these should 
provide that the articles referred to shall cease to have effect July 1, 1916. 

The Government of the King, appreciating the reasons which have caused 
the promulgation of the American law of March 4, 1915, and which lead the 
American Government to propose the abrogation of the conventional stipulations 
in question, accepts this proposal, as regards Articles 11 and 12 of the Consu- 
lar Convention of March 9, ISSO. 

The agreement on this point will take effect dating from tluly 1, 1916. It 
will be considered as established by the present letter and by the communica- 
tion to which it is in response and which Mr. Brand Whitlock addressed to 
Mr. Davignon on July 6 last. 

The Belgium Government is likewise in agreement with tlic American Goy- 
emment for the continued application after July 1, 1916, under the former 
conditions, of the non-abrogated articles of the Consular Convention 

As regards the Treaty of January 24, 1891, with the former Independent State 
of the Kongo, the Government of the King desiring, on its side, to make modi- 
fications in several of its provisions, considers that the best solution consists 
in terminating^ the convention itself. 

I should be obliged to you, Mr. Consul, if you would be good eno-ugh to in- 
form the American Government and request it to make formal acknowledgment 
of this denunciation to the Belgian Government, 

The latter, on the other hand, being desirous of giving satisfaction to the 
request of the Government of the United States, consents that Article 6 of 
the Treaty of January 24, 1891, shall cease to have effect on and after July 
1, 1916, the other articles remaining provisionally in force. 

Eecelve [etc.] 

Beybns 


File No, 711.B521/4 

The Secretary of State to the Minister for Foreign Affairs of 

Belgium 


Department of State, 

'Washington^ November 11^ 1916. 

ExCEUiENGY : I have had the honor to receive through the Ameri- 
can Legation at Brussels and the American Embassy at Berlin, the 
communication which you addressed on June 29, 1916, to Mr. John 
Ball Osborne, American Consul at Havre, France, in reply to the 
note by which Mr. Brand Whitlock, American Minister at BnisseLs 
communicated to Mr. Davignon the text of the law of the United 
States approved March 4, 191^ known as the Seamen’s Act, and 
notice of the intention of the Government of the United States to 
denounce, in pursuance to that law, Articles 11 and 12 of the Con- 
sular Convention concluded March 9, 1880, between the United States 
and Belgium, and Article 6 of the Treaty of Amity, Commerce and 
Nav^ation, signed January 24, 1891, between the United States and 
the Eidependent State of the Kongo, as well as the desire of the 
Government of the United States that the remaining articles of these 



BBIiGIUM 85 

two conventions might be continued in force by agreement or an ex- 
change of notes. 

I am gratified to learn by your excellency’s note that the Belgian 
Government duly appreciated the reasons which caused the enact- 
ment of the law, and has accepted this Government’s notification as 
terminati]^ from July 1, 1916, the effect of Articles 11 and 12 of the 
Consular Convention of March 9, 1880 between the United States and 
Belgium, md that it accepts the further proposal of the Government 
of the United States to leave in force by exchange of notes the other 
provisions of the said convention, which exchange of notes the Gov- 
ernment of the United States understands by your excellency’s com- 
munication may be considered as effected by your communication 
under aclniowledgment and the communication to which it is in 
response, addressed by Mr. Whitlock to Mr. Davignon on July 6, 
1915. This understanding is entirely acceptable to the Government 
of the United States which, therefore, regards the Treaty of March 
9, 1880, as being in full force and effect with the exception of its Ar- 
ticles 11 and 12. 

With respect to the Treaty of Amity, Commerce and Navigation, 
signed on J anuary 24, 1891, between the United States and the In- 
dependent State of the Kongo, your excellency, while stating that the 
Belgian Government consents that Article 5 of this Treaty shall 
cease to have effect on and after July 1, 1916, and that the other 
Articles shall remain provisionally in force, points out that the Bel- 
gian Government desiring to make modification in several pro- 
visions of the Treaty, would prefer that formal notice be given by 
the Government of the United States denouncing the whole Treaty. 

In regard to this, I have the honor to suggest to your excellency 
whether, in view of the fact that the Government of the United 
States has given notice of the abrogation of Article 5 of this Treaty, 
in pursuance of the Act of March 4, 1916, which notice has been ac- 
cepted by the Be^ian Government, that Government may not con- 
sider, as does the Government of the United States, that notice of the 
denunciation of the Treaty as a whole should more a^ropriately be 

g ' ven in behalf of the other contracting party by the Government of 
elgium. 

Accept [etc.] 

Robert Lansing 

File No. 711.6521/8 

The Minister for Foreign Affaire of Belgium to the Secretary of 

State 

[Translation) 

Division B, No, 400 N Mikistky of Fobbion Affairs, 

Le Havre., Deoember SI, 1916. 

Mr. Minister: I have in my possession the letter which your 
excellency was pleased to address to me on November 11 last, in reply 
to the communication of June 29 which I sent to the Consul of the 
United States at Havre about the repeal of certain provisions of 
the Consular Convention concluded March 9, 1880, between Belgium 
and the United States, and of the Treaty of Friendship, Commerce 



36 


FOREIGN EEIATIONS 


and Navigation, signed Januar;^ 24, 1891, between tbe Independent 
State of the Kongo and the United States. 

It is underatood that, in accordance with the agreement arrived 
at between the two Governments, they regard the Consular Con- 
vention of March 9, 1880 as continuing in force with the exception 
of Articles 11 and 12 which are repealed. 

With regard to the treatv of January 24, 1891 with the former 
Independent State of the Kongo, I take the liberty of calling your 
excellency’s attention to the last paragraph but one of my note of 
June 29, 1916, addressed to Mr. Osborne wliich was for the very 
purpose of ^ving the Government of the United States notice by 
the King’s Government of the terminatioA of that Convention as a 
whole, I asked at the same time for an acknowledgment of that 
notice by the American Government. 

The question being thus settled, the Ti’eaty of January 24, 1891 
will be deemed to have been denounced on July 1, 1910. It is un- 
derstood that the provisions of that Treaty set forth in Article 5 
have ceased to be operative on that same date of July 1, 1916, the 
other articles remaining in force for the time being. 

In communicating the foregoing to your excellency, 

I avail [etc.] 


BeYIiINS 


BRAZIL 

File No. 711.3221 

Arnbassador Morgan to the Secretary of State 

[Extract] 

No. 795 American Embassy, 

Rio de Janeiro, June 5, 1916. 

Sm: Eeferring to the Department’s unnumbered instruction of 
May 29, 1915,® and to the Department’s telegraphic circular in- 
struction of April 1, 1916,* I have the honor to enclose a copy, 
both in Portuguese and English, of a note which the Brazilian 
Foreign Office addressed to this Embassy on May 30 last. These 
communications referred' to tlie modifications wliich the Depart- 
ment suggested in the 31st article of the Treaty of Amity, Com- 
merce and Navigation which was concluded between the United 
States and His Majesty, the Emperor of Brazil, on the 12th of 
December, 1828, on account of the Act of the United States Con- 
gress, approved March 4, 1915, entitled “An Act to protect the 
welfare of American seamen ” etc. 

The Brazilian Foreign Office, in its note above referred to, re- 
minds the Embas^ that the Ti-eaty of December 12, 1828, “has 
been greatly modified since that date ”, and that “ on December 12, 
1841, all provisions which had reference to commerce and naviga- 
tion were withdrawn” and only those articles i-emained in effect 
which related to peace and friendship. 

Article 31 was one of those which were withdrawn. 

I have [etc.] 

Edwin V. Morgan 


• For. Bel. 19a6, p, 3» 


^Printed ante^ p. 38. 


BELGIUM 


37 


[Inclosnre — ^TranslatloiiJ 

The Minister for Foreign Affairs to Ambassador Morgan 


Mintstey foe Foeeign Affairs, 

Rio de Janeiro, May SO, 1916. 

Mr. Ambassador: I have the honor to reply, with some delay which has 
arisen through various unforeseen circumstances, of note No. 252 of the 26th 
of June last,® in which your excellency, acting under instructions from your 
Government, proposes to the Brazilian Government the abrogation of Article 
31 of the Treaty of Peace and Friendship, Navigation and Commerce, into 
which the two countries entered on December 12th, 1828. 

This abrogation, as your excellency says, has become necessary in view of 
Articles 16 and 17 of the law which the American Congress passed on March 4, 
1915, which provided that, at the expiration of certain fixed periods after they 
have been denounced, all clauses of the treaties which the United States and 
other Powers have ratified, relative to the imprisonment and reciprocal de- 
livery of officers and sailors who shall have deserted from merchant ships, 
shall become null and void. 


Your excellency is certainly aware that the Treaty of December 12, 1828. 
between Brazil and the United States of America has been greatly modified 
since that date for, on December 12, 1841, all provisions which had reference 
to commerce and navigation were withdrawn, those remaining in effect relat- 
ing only to peace and friendship. Among the former were included those 
covered by Article 31, being inherent, by their nature, to commerce and 
navigation. 

Under these circumstances the suggested abrogation of Article 31, will be 
unnecessary because, according to the above statement, it was set aside in the 
year 1841. It is probable that deserters from American merchant ships have 
been delivered to their respective consuls subsequent to that date but this has 
been done as a general measure of police power and at the request or petition 
of foreign consuls. No further constraint other than this shall be suffered by 
deserters from American ships. 

In this case, therefore, and for the purpose which the American Government 
has in view, the present declaration of the Brazilian Government is suffi- 
cient and makes unnecessary any further formal action which, depending for 
its effect on the action of Congress would only entail further delay. 

I have [etc.]. 


Laueo MfinLKB 


File No. 711 0321/1 

Ghargo MaoMurray to the Secretary of State 

[Telegram] 

American Legation, 

Peking^ July 11^ 1915. 

May the notification of abrogation directed by Department’s in- 
struction of May 29 be explicitly confined to the second sentence of 
Article 18 of the Treaty of 1858, which alone concerns arrest of 
seamen ? MaoMurrat 

Ffie No. T11.9321/X 

The Secretary of State to Charge MacMurray 

[Telegram] 

Department oe State, 

Washington, July 15, 1915. 

Your July 11. Take no action on Department’s May 29 until 
further instructed. Lansino 


Not printed. 

R 1916 a 



PORBIGIT RELATIONS 


38 

Pile No. 711,9321/2 

Minister Reinsoh to the Secretary of State 
[Telegram] 

American Legation, 
PeMng ^ Afril 7, 19W , 

Eeferring to circular of 1st instant, I beg to request instructions 
in reply to my telegram of July 11 last. 

Keinsoh 


PUe No. 711.9321/2 

The Secretary of State to Minister Reinsch 

[Telegram] 

Department of. State, 
Washington^ April 1916, 

Tour April 7. Address appropi'iate communication to Cliincsc 
Government looking to termination of only second sentence of Arti- 
cle 18, Treaty of 1868, relating to arrest deserting seamen. 

Lansing 


File No. 711.9321/3 

Minister Reinsch to the Secretary of State 

[Telegram] 

American Legation, 
Peking,^ June 30^ 1916, 

Exchange of notes effected today terminating as from tomorrow 
the sentences specified in your telegram April 21. 

Reinsch 


denmarr: 

Pile No. 711.6921/4 

Minister Egan to the Secretary of State 

[Telegram] 

Amkricaw L-EGATIOIT, 
Oopmhagen^ June 3, 1916. 

253. Referring Department’s circular April 1, 1916.* Foreign 
Office accepts the arrangement, at the same time espres.se.s the hope 
in applying section 4 of the Act of March 4, 1915, the courts of tho 
United States, in conformity "with ordinary international rules, will 
base as far as possible their decisions concerning the crews of Danish 
vessels upon tne hiring contract (contract d’engagement), made in 
Denmark, and particularly in applying the said section 4 that they 
will take as a basis the rules of Danish maritime law relating to the 
penalty consisting in loss of wages (article 102 maritime law). 
Danish Government expresses the h^e that the details relative to 
the execution of the prescriptions of Section 13 of the Act, which in 


*8e9 above under Belgioxa. 




BELGIUM: 


S9 


the terms of the law will be fixed administratively by the authorities 
of the United States (the Secretary of Commerce), the conditions 
necessary for obtaining the qualifications of able seamen shall be, 
as far as Danish ships are concerned, validly fixed by the respective 
Danish authorities. This arrangement will be definitely concluded 
on the reception of a note of connrmation to the Danish (jovemment 
on behalf of that of the United States. 

Ameeican Ministeb 

FUe No. 711.6921/4 


The Secretary of State to Mirmter Egan, 

[Telegram] 

Depaetment of State, 

"W asMngton^ June 1916, 

Your 253. Department not entirely clear regarding nature note 
of confirmation desired by Danish Government to which you refer. 
You may, however, state that Department is gratified Danish Gov- 
ernment accepts arrangement proposed by this Government respect- 
ing abrogation treaty stipulations in conflict with Seamen’s Act. 

With reference to observations of Danish Government respecting 
construction by courts of United States of Section 4 of the Act, you 
may say that it is of course to be presumed that the courts will 
apply the proper law in controversies that may come before them 
involving the construction of this section of the act. 

With respect Danish Government’s observations regarding the 
execution of Section 13 of the Act, you may point out that regula- 
tions issued by the Department of Commerce prescribe that certifi- 
cates issued to able seamen by competent authorities of the countries 
to which the seamen belong shall be accepted by collectors of customs 
as evidence that the able seamen so certified comply with the require- 
ments of Section 13 of the Seamen’s Act. 

Lansing 


PRANCE 

File No. 711.6121/1 

The French Ambassador to the Secretary of State 

[Extract] 

FRENcaa Embasst, 
Washmgton, February 14., 1916. 

Me. Sboeetaet of State: With a uote dated June 18, 1915,'^ his 
excellency the Ambassador of the United States at Paris transmitted 
to the Ministry of Foreim AffaiiB of the French Republic the text 
of a law enacted by the Congress of the United States on March 4, 
1916, and usually called the ‘^Seamen’s Act 
In compliance with the instructions he had received from the Fed- 
eral Government, Mr. Sharp supplemented his communication con- 
cerning the origin of the said legislation and the motives that actu- 
ated Congress to pass that law ; he concluded with a notice to the 
French Government, as i:equired by the provisions of the Act, of the 


T In compliance with the Instractloxx of May 29, 1916, For. Rel. 1915, p. 9. 




40 


FOUEIGISr DELATIONS 


intention of the Government of the United States to terminate 
Article 6 of the Treaty of June 24, 1822, and Articles 8 and 9 of the 
Treaty of February 23, 1853, with France, by operation of the clauses 
of those treaties which require six and twelve months’ notice respec- 
tively. On that occasion the Ambassador of the United States^ ex- 
plained that although the termination of part of a treaty, as required 
by the Act of March 4, 1915, could not be effected according to inter- 
national usage, the President of the United States in the exercise of 
the power he deems to have been conferred upon him to put upon 
the law the construction contemplated by Congress, nevertheless di- 
rected him to propose an arrangement between the two Governments 
which would make it possible to attain the end contemplated by the 
Act through the abrogation or the mere omission of the articles in 
question. He also proposed the date of July 1, 1916, as that on 
which the abrogation would become operative, that is to say, a twelve- 
month’s previous notice, so as to put the law into effect in France at 
the same time as in the other countries concerned. 

In reply to that communication I have the honor to inform your 
excellency that the Government of the French Republic gladly agrees 
to acquiesce in a partial abrogation of our conventions with the 
Government of the United States which would bear only on those 
articles whose enforcement is inconsistent with the Act of March 4, 
1915 ; the French Government is likewise disposed, with respect to 
the form of such abrogation, to exchange notes as proposed by the 
Government of the United States, which is the most convenient 
modus operandi. In order, however, to forestall any future er- 
roneous interpretation, the French Government would like to be given 
previous knowledge of the draft of the note which would be ad- 
dressed to it on the subject, * * * 

Accept [etc.] 

JuSSERAND , 


File No. 71X.5121/1 

The Secretary of State to the French Arribassador 


No. 1666 Department of State, 

Washington^ March 7, 1916. 

Excet.le’ncy : I have the honor to acknowledge the receipt of your 
note of February 14, 1916, wherein [etc.] 

In reply I have the honor to say that your note is receiving the 
Department’s attentive consideration. 

Accept [etc.] 


Robert Lansing 


File No. T11.6121 A 

[Ebctract] 

No. 1680 DBPAItTMBNT OP SXATB, 

'Washington, AfrU JS, 1916. 

Excellbnot: Eef erring to your excellent’s note of February 
14, 1916, in regard to the so-called Seamen’s Law of March 4, 1915, 
and to the Department’s note of acknowledgment thereof under 
date of March 7, I have the honor to make further reply regarding 
the matters referred to in these communications. 



BBiiGrcrM 


41 


I am very glad to observe that, as stated in your note, your 
Government is willing to acquiesce in the abrogation by an ex- 
change of notes of certain treaty stipulations between this Govern- 
ment and France which are in conflict with the Act, namely 
Article 6 of the Treaty of June 24, 1822, and Articles 8 and 9 of the 
Treaty of February 23, 1853. With reference to the statement in 
your note to the effect that, in o-rder to forestall any future er- 
roneous interpretation, the French Government would like to be 
given previous knowledge of the draft of the note which would 
be addressed to it on the subject, I may say that it would be satis- 
factory to this Government if your Government, in acknowledg- 
ment of the note addressed by the American Ambassador at Paris 
to the French Government regarding the termination of the treaty 
provisions in question, should express its acquiescence in this Gov- 
ernment’s proposal that these treaty stipulations be terminated. 

On the other hand, should your Government desire that there 
be a further exchange of communications in the matter, the De- 
partment will, accorcEng to your Government’s preference as to the 
course of procedure to be followed, either address an appropriate 
note to you, or direct the American Ambassador at Paris to ad- 
dress such a communication to the Government of France. * * * 
Accept [etc.] 

Egbert Lansing 


FUe No. 711.6821/21 


GREECE 


Minuter Droppers to the Secretan/ of State 


No. 118 American Legation, 

Athens^ May SO^ 1916. 

Sir: I have the honor to transmit herewith copy and transla- 
tion of the reply of the Hellenic Government to your request for 
the abrogation of Articles 12 and 13 of the Consular Convention 
of November 19, 1902, and a copy of my acknowledgment of the 


same. 

The Greek Government consents to the abrogation of all provi- 
sions in Articles 12 and 13 which may be contra:^ to the law of 
March 4, 1915, except in so far as the Eoyal Hellenic Navy is 
concerned. 

I presume, however, that the ships of the Eoyal Hellenic Navy 
were never meant to be included, so that this exception will be 
a matter of indifference to the Department. 

I have [etc.] 

Garrett Droppers 


[Inclosnre 1 — Translation] 

The MMster for Foreign Affairs to Ministei' Droppers 

No. 10113 Ministby or Poebign Apfaibs, 

Athens, May 7, X9ie. 

Mb. Minister: In answer to the letter which your excellency sent me on 
April 8 last, I have the honor to inform yon that the communication of the 
United States Government concerning the abrogation of the proTisions of 



42 


FOBBIGN BEIATIOlSrS 


the Consular Convention of November 19, 1902, between Greece and the 
United States of America which are contrary to the law passed by the 
United States Congress on March 4, 1915, and made known to the Greek 
Government in Mr. Whitehonse’s note of June 30, 1915, has been made the 
subject of a special study on the part of the services concerned and has up 
to the present seriously occupied the attention of the Committee on Mer- 
chant Marine. 

The rules relating to the status of seamen which the Act of March 4, 
1915, abrogated have, in our maritime legislation, the character of adminis- 
trative provisions and constitute one of the guaranties o£ the proper opera- 
tion of our merchant marine. 

Nevertheless, in view of the legal situation created in the United States 
by the Act of March 4, 1915, the Royal Government, wishing to comply with 
the desire expressed by the Federal Government, agrees to observe in this re- 
spect the conventional rules in force between Greece and the United States 
and to consider, therefore, as being abrogated the special provisions of 
Articles 12 and 13 of the Convention of 1902 as far as they are in opposi- 
tion to the new American legislation. 

It is well understood that all other provisions contained in the said Articles 
12 and 13, notably everything that concerns the arrest, detention, and imprison- 
ment of deserters from the Greek Navy in the ports and waters of the United 
States, will continue to remain in force on the same basis and with the same 
validity as the other articles of the Convention of 1902. 

I beg of your excellency kindly to acknowledge the receipt of the foregoing 
declaration, and I renew [etc.] 

B. SOOULOUDIB 


[Inclosnre 2] 

Minister Droppers to the Mivdstcr for Foreign Affairs 

* American Leoation, 

Athens, May SO, 1916, 

Totna Excellency; I have the honor to acknowledge the receipt of your ex- 
cellency’s note No. 10113 of the 7th instant by which your excellency informs 
me that the Royal Hellenic Government consents to the abrogation of the 
special provisions of Articles 12 and 13 of the Convention of 1902 between the 
United States and Greece in so far as they conflict with the new American 
legislation of March 4, 1915. 

1 have duly informed my Government that the Royal Government considers 
it as clearly understood that the abrogation of these provisions in no way con- 
cerns the question of the arrest, detention and imprisonment of deserters from 
the Hellenic Navy in American ports and waters. 

1 have [etc.] 


Garrett Droppers 



BEAZIL 


TBEATY FOB THE ADVANOEMENT OF GEHERAL PEACE, CON- 
CLITHED BETWEEH THE HHITED STATES Am> BRAZIL 

Signed at WasTirngton, July 2^, lOlJf; ratification advised "by the Senate^ August 

13, 1914; ratified by the President, November 22, 1915; ratified by Srassil, 

June 22, 1916; ratifications exchanged at Washington, October 28, 1916; 

proclaimed, October 30, 1916, 

Treaty Series Nf>. C27 

Br THE PllESIDENT OF THE UNITED StATES OF AmERIOA 

A PEOCLAMATION 

Whereas a Treaty between the United States of America and the 
United States of Brazil looking to the advancement of the cause of 
general peace was concluded and signed by their respective Pleni- 
potentiaries at Washington, on the twenty-fourth day of July, one 
thousand nine hundred and fourteen, the original of which Treaty, 
being in the English and Portuguese languages is word for word as 
follows: 

The Governments of the United States of America and of Brazil 
being desirous of giving another manifestation of the old friendship 
that binds the two countries together, and being united in the pur- 
pose of promoting the progress of civilization tiirough peace, have 
resolved to enter into a special treaty for the amicable' settlement of 
any future difficulties which may arise between the two countries, 
and for that purpose have appointed as their Plenipotentiaries : 

The President of the United States of America, Mr. William Jen- 
nings Bryan, Secretary of State ; and 

The President of the United States of Brazil, Mr. Domicio da 
Gama, Ambassador Extraordinary and Plenipotentiary; 

Who, duly authorized, have agreed upon the following articles: 

Article I 

The Two High Contracting Parties agree to submit to a Perma- 
nent International Commission, for investigation and report, all dis- 
putes that may arise between them concerning questions of an inter- 
national character which cannot be solved by direct diplomatic nego- 
tiation, and which are not embraced by the terms of any treaty of 
arbitration in force between them; and they agree not to declare war 
or to begin hostilities pending the investigation and report of said 
Commission. 

Aktiglb II 

The Commission mentioned in the preceding Article shall be com- 

g ^sed of five members each appointed for five years, as follows: 
ach Government shall designate two members, only one of whom 

43 



44 


POBEIQN EEIATIONS 


shall be of its own nationality. The fifth member shall be chosen 
by common agreement between the two Governments, it being under- 
stood that he shall not belong to any of the nationalities already rep- 
resented in the Commission. 

The fifth member shall perform the duties of President. 

Either Contracting Party may remove at any timej before inves- 
tigation befflns, any commissioner selected by it, appointing his suc- 
cessor on the same occasion. Likewise, each Government shall also 
have the right to withdraw its approval of the fifth member; in 
which case the new fifth member will be appointed within thirty days 
following the notification of the withdrawal, by common agreement 
between the two Governments, and failing this agreement, the Presi- 
dent of the Swiss Confederation shall be requested to make the 
appointment. 

The expenses of the Commission shall be paid by the two Govern- 
ments in equal proportions. 

The Commission shall be constituted and shall be ready for busi- 
ness within six montlis after the exchange of ratifications of the 
present treaty. 

At the expiration of each period of five years, the Commissioners 
may be reappointed or others may be substituted for them. 

Any vacancy shall be filled in the same maimer as the original ap- 
pointment. 

The Commission shall make its own rules of procedure. 

AnxiciiE in 

In the case of failure to agree upon the diplomatic solution of a 
dispute concerning a question of an international character, the Two 
High Contracting Parties shall submit it to said Commission, for 
investip,tion and report. The convocation of the Commission may 
be macfe by either Contracting Government. The Commission shall 
by preference sit in tire country in which there are the greater 
facilities for the study of the question, and the High Contracting 
Parties ^all furnish all the means to_ that end. The I’eport or 
the Commission shall be pi'^nted within a year counted from the 
date at which the Commission shall declare that its work is begun, 
unless a prolongation of the time shall be accorded by both Parties. 
This report, which is purely advisory and does not bind the Con- 
tracting Parties as to the question at issue, shall be prepared in tripli- 
cate, each Government being furnished with a copy and the third 
kept in the files of the Commission. 

Ajbticus IV 

After presentation of the report to both Government’s six months’ 
time will be given to renewed negotiations in order to bring about a 
solution of the question in view of the findings of said report; and 
if after this new term both Governments should be unable to reach 
a friendly arrangement, they will proceed to submit the dispute to 
arbitration under the terms of the Convention in force between 
them, if such convention covers the question or questions investi- 
gated. 



BEAZHi 


45 


AsncuE V 

The present treaty shall be ratified by the Two High Contracting 
Parties according to their national Constitutions, and the ratifica- 
tions shall be exchanged as soon as possible. It shall take effect 
immediately after the exchange of ratifications and shall continue 
in force for a period of five years, and it sliall thereafter remain in 
force until twelve months after one of the two High Contracting 
Parties have given notice to the other of an intention to terminate it. 

The strict and honest fulfillment of the foregoing clauses is in- 
trusted to the honor of the signato^ nations. 

In witness whereof, the respective Plenipotentiaries have signed 
the present treaty and have affixed thereunto their seals. 

Done in Washington, on the 24th day of July, in the year nineteen 
hundred and fourteen. 

Wiir-iAM Jennings Bbtan [seal] 
Domioio da Gama [seal] 

And whereas the said Treaty has been duly ratified on both parts, 
and the ratifications of the two governments were exchanged in the 
City of Washington, on the twenty-eighth day of October, one thou- 
sand nine hundred and sixteen; 

HoWj therefore, be it known that I, Woodrow Wilson, President of 
the United States of America, have caused the said Treaty to be made 
public, to the end that the same and every article and clause thereof 
may be observed and fuMled with good faith by the United States 
and the citizens thereof. 

In testimony whereof, I have hereunto set my hand and caused the 
seal of the United States to be affixed. _ 

Done at the City of Washington this thirtieth day of October in 
the year of our Lord one thousand nine hundred and sixteen, and 
of the Independence of the United States of America the one hun- 
dred and forty-first 

[seal] Woodrow Wilson 

By the President : 

Eobeet Lansing, 

Secretary of State 

ABBOGATION OF PROVISIONS OF CERTAIN TREATIES CONFLICT- 
ING WITH THE SEAMEN’S ACT OF MARCH 4, 1915.— STATEMENT 

BT BRAZIL OF STATUS OF TREAT? PROVISIONS 


{See Bel£iiun.) 



CHILE 


TREATY FOR THE ADVAHCEMEHT OF GENERAL PEACE, CON- 
CLUDED BETWEEN THE UNITED STATES AND CHILE 

Signed, at Washington, July 2^, IdlJt; ratification advised hy the Senate, 
August 2€f 191J(; ratified hy the President, November 11, 1915; ratified by 
Chile, November 0, 1915; ratifications exchanged at Washington, January 19, 
1916; proclaimed, January 22, 1916, 

Treaty Series No. 621 

By tee President op the United States op America. 

A PKOCLAMATION. 

Whereas a Treaty between the United States of America and the 
Republic of Chile looMng to the advancement of the cause of general 
peace was concluded and signed by their respective Plenipotentiaries 
at Washington, on the twenty-fourth day of July, one thousand nine 
hundred and fourteen, the original of which Treaty, being in the 
Engli^ and Spanish languages, is word for word as follows : 

Treaty for the Settlement of disputes that may oocw between the 
Vmted States of America and OhUe. 

The President of the United States of America and the President 
of the Republic of Chile being desirous to secure in the most effec- 
tive way the amicable settlement of any future difficulties between 
both countries and the subsequent maintenance of peace and good 
amity between them, have resolved to enter into a special treaty for 
that purpose, and to that end have appointed their Plenipotentiaries 
as follows: 

The President of the United States of America, His Excellency 
William Jennings Bryan, Secretary of State of the United States; 
and 

The President of the Republic of Chile, His Excellency Edwardo 
Suarez Mujica, Envoy Extraordinary and Minister Plenipotentiary 
of Chile to the United States of America; 

Who, after having communicated to each other their respective 
full powers, found to be in proper and due form, have agi’eea upon 
and concluded the following articles: 

46 



fmTT.T« 


47 


Asxicub I 

High Contracting Parties agree that all disputes that may 
arise in the future between them, shall, when diplomatic methods of 
adjustment have failed, be submitted for investigation and report 
to an International Commission to be constituted in the manner 
prescribed in the next succeeding article ; and they agree not to de- 
clare war or begin hostilities during such investigation, nor before 
all resources stipulated in this treaty have proved unsuccessful 

AjanouB H 

The International Conunission shall be composed of five members, 
to be appointed as follows : — ^Each Government shall designate two 
members, only one of whom shall be of its own nationality. The 
fifth member shall be chosen by common agreement between the two 
Governments, it being understood that he shall not belong to any of 
the nationalities already represented on the Commission. The fifth 
member sliall perform the duties of President. 

Each of the High Contracting Parties shall have the right to re- 
move, at any time before investigation begins, any Commissioner 
selected by it and, conjointly, the nomination of the successor, or 
successors, must be enacted. Likewise, either Government shall also 
have the right to withdraw its approval of the fifth member | in 
which case the new fifth member will be appointed within thirty 
days following the notification of the withdrawal, by common agree- 
ment between the two Governments, and such agreement lacking, the 
appointment will be made by the President of the Swiss Confedera- 
tion. 

The vacancies that may occur through other causes than those 
already named, will be filled as mentioned in this article. 

The International Commission shall be constituted within the 
four months following the exchange of the ratifications of this 
treaty, and shall notify both Governments of the date of its organi- 
zation. The Commission will establish its own regulations. The 
resolutions of the Commission, as weU as its final report, wiU be 
adopted by the majority of its members. 

The expenses of the Commission shall be paid by the two Con- 
tracting Governments in equal proportion. 

The Commission shall determme the country wherein it will sit, 
taking into consideration the greater facilities for the investigation. 

Abtiole ni 

In case that, as established in Article I, the High Contracting 
Parties shall have failed to adjust the difficulty by diplomatic 
methods, said difficulty will be immediately submitted to the Inter- 
national Commission for its investigation and report. The convo- 
cation of said Conomission may be made by either contracting Gov- 
ernment. 

The High Contracting Parties agree to furnish the Permanent 
International Commission with all the means and facilities required 
for its investigation and report. 



48 


FOBBIGN BELA.TIONS 


The report of the latemational Commission shall be completed 
■within one year after the date on which it shall declare its investiga- 
tion to have begun, unless the High Contracting Parties shall extend 
the time by mutual agreement. The report shall be prepared in 
triplicate: one copy shall be presented to each Government and the 
third retained by the Commission for its files. 

AicricajE IV 

Once the report in possession of both Governments, six montlis’ 
time will be available for renewed negotiation in order to bring about 
a settlement of the difficulty in view of the findings of said report; 
and if even during this new term both Governments should be unable 
to reach a friendly arrangement, the dispute will then be submitted 
to the Permanent Court of Arbitration established at The Hague. 

Notwithstanding, any question that may affect the independence, 
the honor or the vital intei’ests of either or both of the countries, or 
the provisions of their respective Constitutions, or the interests of 
a third nation, will not be submitted to such or any other arbitration. 

A special and previously agreed convention wUl detail, if arbitra- 
tion is resorted to, the matter of the controversy, the extent of the 
Arbiters’ powers, and the length of time to which the Court of 
Arbitration must subject its organization and procedm-e, including 
the presentation of memorials, proofs, and pleas, 

Aetiom! V 


The present treaty will be ratified by both Governments after 
obtaining its approval by the Constitutional Powers of both coun- 
tries, and the ratifications shall be exchanged in Washington as soon 
as possible. 

The special convention prescribed by the final paragraph of Article 
IV remains also object to the constitutional requisites of both 
countries. 

The present treaty shall take effect immediately after the exchange 
of the ratifications; and shall continue in force for a period of five 
years, and it shall thereafter remain in force, during successive 
periods of five years, until one of the High Contracting Parties have 
given notice to the other of an intention to terminate it. 

In witness thereof the respective Plenipotentiaries have signed the 
present treaty and have affixed thereunto their seals. 

Done in Washington, on the 24th day of July, in the year nineteen 
hundred and fourteen. 


William Jennings Bkyan 
Ed? SuIrbz MujfoA 



And whereas the said Treaty has been duly ratified on both parts, 
and the ratifications of the two Governments were exchanged in the 
City of Washington, on the nineteenth day of January, one thousand 
nine hundred and sixteen; 



OHILB 


49 


Now, therefore, be it known that I, Woodrow Wilson, President 
of the United States of America, have caused the said Treaty to be 
made public, to the end that the same and every article and clause 
thereof may be observed and fulfilled with good faith by the United 
States and the citizens thereof. 

In testimony whereof, I have hereunto set my hand and caused 
the seal of the United States to be affixed. 

Done at the City of Washington this twenty-second day of January 
in the year of our Lord one thousand nine hundred and sixteen, and 
of the Independence of the United States of America the one hun- 
dred and fortieth. 

[seal] Woodeow Wilson 

By the President: 

Robekt Lansing 

Secretary of State 



CHINA 


AGREEMENT BETWEEN THE UNITED STATES AND CHINA EX- 
TENDING TIME EOR APPOINTMENT OP THE COMMISSION UNDER 
ARTICLE 2 OF THE TREATY OP SEPTEMBER 15, 1914, EFFECTED 
BY EXCHANGE OP NOTES 

Treaty Series No. 619-A 

TAe Secretary of State to the Chinese Minister 

Department’ of State, 

’Washington^ May ii, 1916. 

Sir: It not having been found feasible to complete the Inter- 
national Commission provided for in the treaty of September 15, 
1914, between the United States and China for the advancement of 
the general cause of peace, I have the honor to suggest, for the con- 
sideration of your Government that the time within which the 
organization of the Commission may be completed be extended by an 
exchange of notes from April 22, 1916, to August 1, 1916. 

Your formal notification in writing that your Government receives 
the suggestion favorably will be regarded on this Government’s ])art 
as sufficient to give effect to the extension, and I shall be glad to 
receive your assurance that it will be so regarded by your Govern- 
ment also. 

Accept [etc,] 

Kobert Lansing 


The Chinese Minister to the Secretary of State 

Chinese Legation, 
Washington.^ May 19 ^ 1916. 

Sir : I have the honor to acknowledge the receipt of your note of 
the 11th instant, in which you are good enough to suggest, for the 
consideration of my Government, that the time within which the 
organization of the International Commission provided for in the 
Treaty of September 15, 1914, between China and the United States, 
for the advancement of the general cause of peace may be completed, 
be extended by an exchange of notes from April 22, 1916, to August 1 , 
1916. 

I am authorized by my Government to inform you in reply that 
my Government is pleased to accept this suggestion of your Govern- 
ment and accordingly regards the extension of time from April 22, 
1916, to August 1, 1916, for the organization of the Commission as 
effective by this exchange of notes. 

Accept [etc.] 

Vi Kyuin Welungton Koo 
50 



CHnSTA 


51 


POLITICAIi APFATRS *— MOVEMEISTT TO BESTOBE MONABCHICAIi 
GOVEBNMENT lET CHINA. SECESSIONIST AND BEVOEHTIONABY 
MOVEMENTS. CONVOCATION AND ASSEMBLY OF PABLIAMENT 

File No. 893.01/64 

Minister Reinsoh to the Secretary of State 

[Telegram] 

American Legation, 
Peking^ January S, 1916^ 7 p. m* 

The situation is regarded as more serious from the point of view 
of the Central Government. While no systematic organization of 
the opposition has as yet been created outside of Yunnan and Kwei- 
chow the continued existence of disaffection is likely to encourage 
opposition elsewhere. Yangtze merchants lately quite in favor of the 
monarchy are now blaming the Central Government for the prevalent 
business depression. Feng Kuo-chang^ while loyal to the President, 
impliedly r^rves independence of action. The fatalistic unanimous 
opinion which hitherto favored the President may work to his dis- 
advantage should the disaffection show positive strength. 

Reinsoh 


File No. 893,00/2348 

Minister Reinsch to the Secretary of State 

No. 876 American Legation, 

Peking^ January 5, 1916^ 

Sir: I have the honor to transmit herewith copies of articles pub- 
lished in the Peking Gazette of December 29, 30, and 31,- deling 
with the situation in Yunnan; as well as copies of despatches from 
the consular offices at Nanking and Hankow on this subject.^ 

The movement in Yunnan follows the plan originally conceived by 
the revolutionaries in 1911, but not followed out then because of the 
unexpected suddenness of the rising in the central provinces. The 
plan is based upon the idea that, by controlling a province inaccess- 
ible and difficult to subdue^ a center is establi^ed for radiating in- 
fluences hostile to the Peking Government to the end of gradually 
gaining over more and more provinces. By thus cutting down the 
income of the Central Government, it is believed that it can be re- 
duced to the necessity of negotiating, with the armed opposition. 

In the present situation, two principal features enter: — ^the per- 
sonal unpopularity of Yuan Shih-kai, and fear of Japan. The pre- 
paratory steps towards the adoption of the monarchical regime were 
so successful because no one desired to raise that opposition which it 
was believed would bring on interference on the part of Japan. To 
this there must be added the general apathy of the masses of the 
Chinese people as to any question of politicaJi organization, and the 
fact that the Chinese are naturally conformists to any movement that 
seems to have official sanction. 


^ Continued from For. Eel. 1915^ p. 44. 
» Not printed. 




62 


FOBEIGN BELATIOIsre 


The men who hare begun the movement of opposition in Timnan 
count primarily upon the lack of enthusiasm for Yuan Shih-kai. 
But it does not appear that a widespread organization, including 
the leaders in the southern and central provinces, has been effected. 
Tsai Ao, the leader in the movement, is universally considered a 
mau of unusual intelligence and administrative ability. He also 
has the gift of personal leadership, which brought the adhesion of 
the Yunnanese to his movement, as they had been his enthusiastic 
supporters when he was tvA% (military governor) of that province. 
As Yunnan is inaccessible, it may be possible for the secessionist 
government to maintain itself there for a long time. 

Should the movement make headway in the southern and central 
provinces, it would seem that one of two alternatives would result : 
either Yuan would have to compromise, retrace his steps, and retain 
the presidency with greatly curtailed powers and an important de- 
velopment of decentralization; oi', should he develop and use con- 
siderable military strength in the north, the long-threatened division 
of China might be brought about. 

Hitlierto the reports received by the Legations in Peking do not 
indicate either that there is a systematic plan of cooperation embrac- 
ing the southem provinces, or that the movement is spreading f I'om 
Yunnan by its own force. Thus far, the ohiang chum (militai’y 
governors) and governors are reported loyal and there are only 
a small military revolt in Nanking and the proclamation of martial 
law in Kweichow which constitute concrete indications of a spread 
of the opposition movement. The mutiny at Nanking may, however, 
have purely local causes. 

Conditions in the Yangtze Valley up to date do not indicate the 
existence of a powerful organized opposition there. It is true the 
business men in Shanghai and at up-river ports are inclined to blame 
the Peking Government for the continued depression in trade, but 
these same merchants only three months ago were quite strongly 
in favor of the monarchical movement, as they believed that it would 
give stability to commercial affairs. 

A great deal will depend upon the attitude of General F8ng 
Kuo-aiang, military governor of Eliangsu, General Chang Hsun, and 
Chu Jui, military governor of Chekiang. General Feng cannot 
be said to be at present an enthusiastic Yuan man, being apparently 
displeased with some actions of the President of late; but he is stiU 
loyal to the President and is holding the central position in the 
Yangtze for him. Having avoided entirely committing himself to 
the side of the President through declining to accept the position of 
chief of staff, General F8ng Kiio-chang remains in an independent 
position, so that conceivably he might espouse the cause of the op- 
position and make himself its arbiter if it were to become sufBcientty 
formidable. It is believed in Shanghai that there is a certain under- 
standing among the three men mentioned above, and that they expect 
to hold the balance of power in the Yangtze region in an expectant 
attitude as to the development which affairs will take. This ^lief , 
however, is strongest among those who are somewhat favorably 
inclined to the opposition movement and may not represent an actual 
accomplished fact in the relations of these three important leaders. 



OHXN-A 


58 


In Canton, a great deal depends upon General Lung Chi-kwang, 
who appears to be loyal to tlie^ President. Should he be removed by 
assassination, it might be difficult to control affairs in Kwang- 
tung for there are some strong, though unorganised, elements of 
opposition there. 

The situation is beginning to show some serious aspects from the 
point of view of the interests of the President. It is possible that he 
may soon be face to face with a decisive crisis. He is still well sup- 
plied with mon^, as the salt revenue produces a surplus of between 
$5,000,000. and $6,000,000. a month, but if the opposition movement 
spreads he will as in 1913, need outside financial assistance. The 
$10,000,000. loan is again being discussed with the foreign banks. 
Should the movement of opposition gain in volume, important in- 
ternational factors would inevitably be introduced into the situation. 

I have [etc.] 

Patti. S. Reinsoh 


File No. 893.00/2339 

Minieter Remsch to the Secretary of State 

[Telegram] 

Amerioak* Legation, 
Peking^ Ja^mary li, 1916^ 8 p. m. 
Canton, ITanking, Chunking, reported quiet although the Yunna- 
nese revolutionists are attempting military operations against 
South. There is some reason to believe that revolutionary move- 
ment is over. 

Reinsoh 


File No. 803.00/2349 

Minister Reinsoh to the Secretary of State 

No. 892 American Legation, 

Peking^ Jamiary 16^ 1916. 

Sir: Supplementing my despatch No. 876 of the 3d instant, 
relative to political conditions in China, I have the honor to enclose 
for the iniormation of the Department, copies of further reports 
from various consular offices,^ also cutting from the Peking Gazette 
of January 7 and 10.® giving translations of telegrams which have 
passed between the Central Government and the local authorities of 
various provinces, concerning the Yunnan movement, together with 
a report of the action taken by the Tsan Gheng Tuan (Council of 
State). There is also transmitted the substance of telegrams re- 
ceived from the Consulates at Nanking (January 8, 1 p. m.), and 
Changsha and Canton, dated January 14^ 11 a. m. and p. m., 
respectively; together with a c<my of a wireless message received 
on the 11th instant from the Commander-in-Chief of the U. S. 
Asiatic Fleet.® 

From all these papers, it appears that the official view of the situa- 
tion remains optimistic. There has been no further defection of mih- 


2 Not printed. 

X06413’»— F B 1916 8 



54 


FOEEIGir BELATIONS 


tary governors, and the military organization as a whole seems to 
remain loyal to the President, It is evident that the I'evolutionaries 
have been but moderately supplied with fimds wherewith to pur- 
chase the adherence of Government troops. The governors of the 
different provinces report that they have the situation well in hand, 
and that they feel confident of their ability to suppress local dis- 
orders. The official reports from Yunnan itself indicate that the 
province is far from being united in the revolutionary cause, and 
that there are factional struggles going on. The Province of 
Kweichow, which, during the first days of the movement, was gen- 
erally believed to be associated with Yunnan, has maintained a more 
or less neutral attitude : the notables of the province have addressed 
both the Yunnanese and the Central Government with the request 
that no troops might be sent into Kweichow, and the military gov- 
ernor has remained loyal, although he has only small forces at hand. 

More or less serious local disturbances have taken place in Kwang- 
tung, where native customliouses have been attacked at two points’ 
and outbreaks have occurred at several other places: these in- 
stances are, however, too sporadic and disconnected to warrant the 
conclusion that a widespread and systematic revolutionary organiza- 
tion exists, even in Kwangtung. 

In the lower Yangtze region quiet has thus far been maintained, 
with the exception of isolated attempts at assassination and ti-ain- 
wrecking. There is indeed in the Yangtze provinces an under- 
cuirent of strong dissatisfaction with the personal Govemmenc 
of His Excellency Yuan Shih-kai. The men of moderate views m 
this region, where there is a high level of intelligence and business 
capaci^, feel that the Yuan regime has not succeeded in jiroducing 
any concrete betterment in national affairs. These moderates are 
not, however, inclined at the present time to join the radicals in 
a revolutionary movement: for the sake of peace and normal con- 
ditions, tliey are willing to allow the empire to be established, with 
the expectation that the Central Government will then address it- 
self to constructive work. While, therefore, the moderates have 
no enthusiasm for Yuan Shih-kai, they are willing to suffer the 
change in the hope that improvement may come and under the cer- 
tain belief that resistance at the present time would bring more 
evil than good. 

Thus, it would seem that the revolutionary movement in Yunnan 
has not passed beyond the stage of a personal revolt against His 
Excellency Yuan Shih-kai of a few prominent and able military 
leaders. The fact that in the three weeks since its start the move- 
ment has not spread, would appear to indicate that there had been 
no systematic organization among the military leaders of different 
provinces for cooperation. The sporadic outbreaks in Kwangtung 
and the activities of robber bands in northern Shansi and on the 
Mongolian frontier, while encouraged by the feeling of uncertainty 
now existing, cannot be considered as part of a large organized polit- 
ical movement. The Canton disturbances appear to be due to law- 
less elements who would at any time be ready to take advantage 
of official weakness; while the raids on the Mongolian boundary 
are the result of conditions there existent for some time. 



CHIl^A 


55 


Under the circumstances, the representatives of the Powers in 
Peking, with whom I have discussed this matter, have expressed 
the feeling that a delay of recognition of the monarchical govern- 
ment womd subserve no useful purpose, but would serve only to 
encourage further disturbances on the part of irresponsible elements. 
If there were evidence of the existence of a large republican party, 
governed by definite views of public policy, and led by responsible 
and able men, everjrone would desire to have them given a chance 
to establish and maintain their ascendency in the Government, but 
no such organization has thus far made its appearance. 

I have [etc.] 

Patil S. Eeinsch 


File No. 893.01/68 

Minister Reinsch to the Seeretary of State 

[Telegrams] 

American Legation, 
PeJcing^ January 19^ 1916^ 9 p, m. 

The Yunnan revolt has not spread but retains the character of a 
local opposition of a few military leaders against Yuan personally. 
Yangtze ports and Canton report everything quiet. There is 
sporadic agitation by radicals but no serious organized opposition. 
The moderates everywhere desire no commotion at this time. 

It is probable that the change in the form of state will soon be an- 
nounced together with a specific declaration of policy, including im- 
mediate convocation of a constitutional convention, creation of a 
representative assembly and a cabinet, immediate liberal provision for 
public education and taxation reform. 'No further titles of nobility 
are to be awarded.^ Those already given are to be treated as military 
honors. Progressive element in the cabinet is in full control of 
policy of this Government. 

Neutral Ministers agree that recognition upon announcement of 
the change is warranted by actual authority of Government and 
made advisable as avoiding possible irresponsible plotting which at 
present could not result in constructive organization but only in 
bloodshed and disturbance. 

Should no material change occur and should I not receive further 
instructions I ^all carry out your instructions of December 21st, 
3 p. m.® after the change has been announced. 

All the European Legations fear that should the state of uncer- 
tainty be prolonged and serious unrest result, Japan would again 
intervene. 

Reinsoh 


File No. 893.01/76 

American Legation, 
Pekmg^ January S9y 1916^ S p, m. 
The Ministers of Spain, the Netherlands, Sweden, Portugal and 
Denmark signified their readiness cooperate in the recognition of 
the Imperial Government. Nevertheless I did not intimate to the 


»Por. Bel. 1916, p. 78.> 



56 


rOREIGir IffilATIONS 


Chinese Government likelihood of recognition, because, while many 
reasons speak for ready recognition of a. good government represent- 
ing the only adequate organization at present in sight and animated 
by progressive ideas of policy, yet it seems necessary to allow the 
authority of the government in the South to be more fully tested. 
The decision was rendered difficult because delay and uncertainty 
would probably encourage the opposition and give scope to unfavor- 
able outside influences. 

The Government on January 22 annoimced that no date had been 
set for accession. During the week Yunnan forces advanced into 
Southern Szechuan where the situation remains uncertain. In order 
to obtain a more accurate view of the situation in the South, I au- 
thorized the military attache to proceed to the Yangtze Valley and 
the naval attache to Canton and eventually to Yangtze. 

Please inform respective Departments. 

Eeinsch 


File No. S93.01/S8 

Minister Reinsch to the Secretaru of State 

hTo. 931 Ameiucan Legation, 

Peking^ February P, 1916. 

Sir : I have the honor to report thaL as an engagement had been 
made for me to see the President on Thursday, January 20th last, 
1 took occasion at that time to present to His Excellency the mes- 
sage from the President of the United States, communicated in your 
toicgi*am of January 17, 5 p. m.^ President Yuan Shih-kai received 
this coui*tesy with a warm expression of his appreciation of the 
friendship of the American President, Government and Nation. 

I also have the honor to enclose, for your information, a incino- 
randum of a conversation, concerning a constructive policy for 
China, which took place on the occasion of this visit; together with 
a copy of an informal memorandum, regarding the use of foreign 
experts in the Chinese administration, which I dictated at the re- 
quest of President Yuan and for his use, to embody the substance 
of pait of the conversation. 

I have [etc.] 

Paul S. Reinsch 


tinclosure 1] 

Memorandum of oonversaHon lyetween His Excellcncif, President Yuan Shih-kai 
and the American MMster on January 20 ^ 1916 

After communicating to President Yuan the message of President Wilson, 
and receiving a warm expression of his cordial appreciation thereof, the con- 
versation turned upon the need of a constructive policy, energetically pursued, 
in order to gain the support of all parts of China and to render the Govern- 
ment efficient. The American Minister expressed quite frankly tlie impression 
which he had gained from confidential reports from the south and center of 
China, that .there was widespread dissatisfaction with the Government; he 
stated that, in his opinion, the only way to overcome this feeling lay in the 
early creation of a representative Parliament, and the pursuance of a truly 


^ Reply of President Wilson to President Yuan^s congratulation on the occasion of 
PrealdAnt Wilson^s marriage. Not printed. 




CHINA 


67 


constructive policy in the public administration. The President stated that 
the Committee that was engaged in drawing up a Constitution was following 
the injunction of President Goodnow that" the Constitution of an Oriental 
State should be adapted to the character and the traditions of its people, and 
that, for that reason, he had designated Professor Ariga, the Japanese Adviser, 
to assist the Committee on the Constitution with systematic suggestions. The 
President expressed himself as fully convinced of the necessity of the early 
lormation of a Parliament, and he signified assent when the American Minister 
dwelt on the two-fold usefulness of a Parliament in a modern State, as a 
source of information through which tlie Government could ascertain the real 
needs and desires of the public and as an organ through which the measures 
of the Government, after full discussion, could be explained and rendered ac- 
ceptable to the people, thus gaining for the Government a broad basis of sup- 
port. While the President is always inclined to hark back to the failure of 
the first Parliament, he has apparently become convinced of the necessity of 
instituting a legislative body with real power and responsibility, from which, 
however, it is likely that he would desire to withhold lull budgetary authority, 
as is the case in Japan. 

The conyersation then turned upon methods of administrative efficiency, 
especially auditing and accounting reform, and the need of thoroughly over- 
hauling the system of taxation, with due regard to simplifying the forms and 
guarding the incidence so as not to discourage the development of commerce. 
The President was inclined to fall back on the usual argument that as long as 
China was not permitted to raise a larger amount of revenue through import 
duties, a thorough reform was impossible and the Government was forced, 
through its necessities, to take recourse to every available form of taxation. 
He admitted, however, the faultiness of the present system, and agreed that a 
thorough reform of the land tax, together with a simplified system of con- 
sumption and stamp taxes should be established, with a view to eliminating 
all taxation on the movements of commerce within the country which now 
does so much to retard development. The importance of a great practical pro- 
gram of improvements in the fundamental conditions of life, through the build- 
ing of more railways and better roads, through the development of forestry 
and agriculture, and the reclamation of various areas subject to floods, was 
then touched upon. 

The conversation then turned upon the use of foreign experts in China. 
The American Minister stated that the failure of the foreign-educated Chinese 
to make the most of their education for the benefit of China lay in the fact 
that when they returned from abroad they did not find in responsible positions 
any men trained in the practical administration of public and economic affairs, 
according to modern standards of science and efficiency. Therefore, having 
only a theoretical education in so far as its application to China is concerned, 
they were unable to do really efficient service. The remedy must be sought in 
using high class foreign experts in all the technical branches of the administra- 
tion: such as accounting and auditing, railway administration, mining, and 
scientific agriculture. These men should he animated with a desire to serve 
China and to train the younger Chinese for leadership in efficient administra- 
tive work. A further summary of this part of the conversation is contained 
in a separate memorandum. 

(His excellency. Mr. Liang Tun-yen, Minister of Communications, stated to 
Mr. Eeinsch subsequently that the President- had fully cliscussotl the matter of 
employment of foreign experts in a cabinet meeting early in February.) 


[IneloKure 2 ] 

Memorandum on the uae of foreif/n ewperU ’by the Chinese Covemment 

The Need: 

The efficient organization of the methods and processes of the Chinese Gov- 
ernment, and the training of younger officials in these methods of efficiency 
require the, presence in the Chinese administration of thoroughly trained for- 
eign e^eperts. There is no other way in which the Chinese administration can 
he organized to fulfil the needs of modern government, and thus to preserve 
the -power and integrity of the Chinese State. Foreign experts serving In 



58 


FOKEIGK EELATIOKS 


China should be devoted primarily to the interests of the Chinese Government 
and should aim to educate men among the younger and older officials to take 
the place of such foreign experts in the shortest possible time. 

The Vs6 of Eii'perts: 

In order that definite and fruitful use of experts may he made, the follow- 
ing method is suggested: Foreigners are employed for various purposes 
under the designation of Foreign experts in the service of the Chinese Gov- 
ernment.'* When the qualifications of such an expert have been ascertained, 
he will be assigned by special order, which may be confidential, to give his 
attention and assistance primarily to a certain official, ministry, department 
or bureau. He is provided with a good interpreter, and is held responsible 
for seeing that the affairs of the bureau to which he is assigned are conducted 
in accordance with the standards of modem administrative efficiency. The 
Chinese official in charge, to whom he is assigned, would be instructed to invite 
the full cooperation of the foreign expert, to discuss with him all matters of 
organization, work and personnel, and to accept his mature advice unless spe- 
cific reason could be assigned for not so doing. The foreign expert will receive 
instructions to cooperate in the same complete and frank way with the official 
in charge and, at stated inteiwals, to make a report on the organization and 
workings of the department to the Ministry, the Secretary of State, or the 
Head of the State himself. 

In this manner great assistance might be rendered, for instance: in the 
organization of municipal services, the stamp tax, the land tax, elective water 
power, river conservancy, codification of laws, systematic accounting, technique 
of railway management, etc. 

Result: 

Official responsibility and efficiency will be developed. The official in charge 
knows China, its special conditions and needs ; the expert knows methods of 
efficiency necessary in modern government. The combination of the two will 
give to the Chinese Government the organization it requires. Younger officials 
will be trained. 


Direct Bmployment of Foreigners: 

Foreigners may also he employed directly, as Chinese executive officials. 
Foreigners knowhig China and the Chinese language intimately, and having 
the other necessary qualifications may be employed directly with good results 
as officials in various departments. Technical experts, dealing with details of 
scientific method and management could be employed in subsidiary positions as, 
for instance, mechanical and mining engineers, mint assayers, health ex- 
perts, etc. 

Method of Employment: 

The experts should not owe their appointment to the foreign Legations at 
Peking, nor feel any special responsibility towards them, although in special 
cases the Legations might be consulted. The following would recommend itself 
as a general system for selecting experts : The Chinese Legations in the capi- 
tals of the principal countries should put themselves in touch with the great 
institutions of learning and technical associations (such as engineering associ- 
ations, associations for economic and statistical work, etc.). The Legation 
should endeavor to discover men of exceptional training, with a spirit of devo- 
tion to their work and an interest in the welfare of China. Such men should 
have in all cases the recommendation of the first authorities in their respective 
subject or line of work. When the Legation has satisfied itself on these points, 
it should notify the home Government of Its selections, who might then be 
employed as occasion demanded. The Government might also have to Peking 
a number of trusted foreigners In high positions, who might be Informally 
consulted as to the character and qualifications of men considered for expert 
service. In some countries there are organizations such as, for instance, the 
Carnegie Endowment for Peace at Washington, which have the means of being 
helpful to the Chinese Government in making proper selections. 



CHIl^A 


59 


FlleNo.S&3.00/2362 

Minister Reinsch to the Secretary of State 

No. 947 Ameeican Legation, 

Peking^ February 191S. 

Sir: Supplementing my despatch No. 918 of the 2d instant, I 
have the honor to transmit herewith copies of despatches from 
various consular offices in China further reporting on political con- 
ditions in their respective districts.® It has been impossible for me 
to report to the Department important information which has from 
time to time reached me concerning the undercurrents in Chinese 
politics, both at Pelting and in the provinces, because I do not ven- 
ture to trust this information to the m'ails; while to send it by cable 
might be considered by the Department unjustifiable from the poiat 
of view of the considerable expense it would occasion. I must, there- 
fore, limit myself to giving in the cablegrams the resultant of a 
great deal of information which I am prevented from reporting 
specifically. Should the Department desire to have me give details 
more fully, I have the honor to request instructions to that effect. 

There is no doubt that the authority of His Excellency Yuan 
Shih-kai has been further weakened both through the delay in ex- 
pelling the Yunnanese from Szechuan and through the failure on 
the part of the President to announce a definite policy with respect 
to the Constitution. 

When the unusual difficulties connected with the transport of 
troops up the Yangtze Eiver at this season of the year, and through 
the mountainous regions of Szechuan and Kweichow are considered, 
it is, from a military point of view, not remarkable that greater prog- 
ress has not been made; in fact, the problem of river transportation 
seems to have been solved with great efficiency. In this connection, 
I have the honor to enclose clippings from the Peking Gazette of 
February 17 and 19,® concerning the topography of the provinces 
'affected by the rebellion and the punitive expedition against it, in- 
dicating the difficulties with which the military forces of the Grov- 
emment have to contend. Still, the fact of long-continued and 
spreading disaffection against the Head of the State is bound to tell, 
esMcially in China whore so much depends upon prestige. 

Reports from other provinces also indicate that the strong under- 
current of ill will against Yuan Shih-kai is begirming to come to 
the surface here and there. The situation is particularly doubtful 
in Hunan and in the two southern-most provinces, Kwangsi and 
Kwangtung. On February 19 the yamen of the military governor 
at Changsha Was attacked and the feelings of the public there seem 
to be much excited. It is not at all certain how far the military 
governor, Tang Hsiang-ming, himself, could be relied upon in a 
crisis, as it is believed that his own sentiments are with the repub- 
licans. It is reported that the Chamber of Commerce of Kwangsi 
has requested the Central Government not to send any troops into 
&at province ; this step points to a situation resembling the neutral- 
ity of semi-independence of Kweichow Province. To all these un- 
certainties there must also be added, as an important persona] factor, 


>Not printed, 




60 


FOREIGN BEIATIONS 


the resentment which is cherished against Yuan Shih-kai by both 
Feng Kuo-chang Rnd Chang Hsun, because of indications which they 
have that the President set them to watch each other. 

With all these uncertainties, there remain the fundamental facts 
that the moderates do not desire an armed movement of opposition 
at the present time, because of the fear of Japanese intervention, 
and that there exists among the most prominent leaders in Central 
and North China a tacit understanding favoi’ablc to the maintenance 
of peace and order in these regions until the question in dispute can 
be permanently settled. 

It is doubtful whether His Excellency Yuan-kai yet comprehends 
the strength of the opposition. In my opinion, it is not too late for 
him to Avin hearty support in the central provinces by giving an 
absolute assurance of a constitutional r4gime, implying a devolution 
of large portions of his present dictatorial power to a cabinet and 
parliament, together with the granting of a definite measure of self- 
government to the provinces. Whether he is capable of realizing 
the necessity of such a policy and of formulating it in a practical 
way, is still doubtful. But unless such action can be taken within 
the next few Aveeks, or at least the leaders can be assured thRt such 
will be the tendency of his policy under the new regime, it is to be ex- 
pected that the opposition Avill increase i-ather than lessen. The 
return to a monarchy of the old type is plainly impossible, and even 
if it should be attempted, could be successful under the most favor- 
able circumstances only for a short time. 

I hRve [etc.] 

Paul S. Reinsoh 


File No. 803.01/00 

Mmister Remsoh to the Seeretary of State 

No. 955 American Legation, 

Peking, Febmanj, 2Jt, 1916. 

Sir: I have the honor to report that on the occasion of a call upon 
His Excellency President Yuan Shih-kai, on February 16, I dis- 
cussed Avith him, among other things, the subject of constitutional 
guaranties. More especially, I made inquiries concerning his policy 
with respect to the poAvers to be delegated to the cabinet and to the 
parliament. A memorandum of the conversation, drawn up by the 
Chinese Secretary of the Legation, is herewith transmitted.® 

Many of the most experienced observers of Chinese affairs have 
come to the conclusion that the only chance of maintaining a central 
government, recognized by all the provinces, and of avoiding a dis- 
astrous conflict and eventual foreign interference, is for the Presi- 
dent to make a definite and condusiA-’e declaration of policy, in- 
cluding the firm establishment of an honest and straightforward 
constitutional system. This view is shared by the Ministers most 
familiar with and best disposed towards China, as are, for instance, the 
Ministers of Great Britain, the Netherlands, and Austria-Himgary. 

I was subsequently informed by one of the Ministers of State that 
the President had discussed the question of an early convocation of 


* ^ot printed. 




CHINA 


61 


parliament with his Council of Slate ; that it had been considered by 
the Ministers desirable to undertake this measure and that a com- 
mission had been charged to ascertain whether, under the existing 
lawSj the members elected for the Citizens (Constitutional) Con- 
vention could be summoned as a parliament, or whether a new elec- 
tion would be necessary. There is herewith enclosed an editorial 
from the Peking Daily News of today which is a semi-official paper, 
reporting that^ the cabinet has been ordered to meet once a week 
under the presidency of the Secretary of State, without the presence 
of the emperor. This and the other reports discussed in the editorial 
indicate that the establishment of true constitutionalism is occupying 
the President and his chief advisers. There is also enclosed a trans- 
lation of a mandate, published in today’s Peking Daily News, in 
which the accession to the throne is indefinitely postponed. 

I have [etc.] 

PAun S. Eeinsch 


[Inelosure] 

(From the Peking Daily News, February 24, 1916.) 

The following mandate, issued last night, shows the decision of the Ta 
Huang Ti to postpone the date of accession until some more favourable time 
ill future : 

Every day we have received memorials and telegrams from various civil 
and military officials, representatives of the citizens of the country, various 
legal bodies and individuals requesting us to ascend the Great Throne at an 
early date. Although patriots have expressed their desires to devise means 
for permanent peace and a good Government, it is the duty and responsibility 
of those managing the affairs of the State to study the general situation of the 
country. At present Yunnan and Kweichow have raised disturbances, bring- 
ing consternation to the peaceful inhabitants and in Western Hunan and 
Southern Szechuan where the robbers have made their raid, the people have 
been scattered and driven away from their daily occupations*. It is indeed an 
agony to hear the story of their miserable condition, and we cannot enjoy our 
sleep and food. Moreover, wicked men have put forth all kinds of rumors 
and false reports to deceive the people. My original desire to save the nation 
and the people has been made a pretext for the ambitions men to contend for 
wealth and power. My heart will not feel at ease if I should ascend the 
Throne at this time; therefore I have decided that the accession should be 
postponed. All the patriotic officials, scholars and people should therefore 
have sympathy with my difficult position; and it is hereby ordered that here- 
after all the memorials and telegrams in connection with the request for ac- 
cession should not be transmitted to us. 


Pile No S93.00/23G3 

Minister Reinsch to the Secretary of State 

Ko. 956 American Legation, 

Pekmg, Fe'bruary 21/., 1916, 

Sir : In continuation of my despatch No. 947 of yesterday’s date, 
I have the honor to enclose fuither correspondence.^ In these com- 
munications rumors with respect to Japanese activities encouraging 
the revolutionary movement are mentioned: such rumors and de- 
tailed facts pointing in the same direction are reported from all parts 
of China. They take many forms. 


®Not printed. 




62 


POBEIGN KEIiATIONS 


The Chinese have especial reason to complain of the nnfoundecl 
and exaggerated statements which are constantly being sent out 
through the tTapanese pi’e^: such arc the statements of extended 
disaffection in Kirin Province mentioned in the enclosed despatch 
(No. 113) from the Consulate-General at Mukden.^ Similar alarm- 
ist reports, largely unfounded, are sent through Japanese sourc^ 
from all parts of China; from Peking, palace revolts and apoplectic 
strokes of the emperor-elect are the normal order of the day. 
Rumors are also spread designed to undermine the credit of the 
Chinese banks, as described in the enclosed article from yesterday’s 
Peking DaMy News.^ 

In all parts of China revolutionary agitators are talcing advantage 
of Japanese extraterritorial coramiinities and of the hospitality of 
Japanese to find a safe refuge from which to manipulate their agi- 
tations. It is also believed that large amounts of money are 
supplied from Japanese sources, although there is no proof of this. 
As the Japanese have so much to gain from disturbances and un- 
rest in China, it is quite natural that public belief should credit them 
with widespread and active intrigue, for which, indeed, past experi- 
ence offers precedents and towards which a large number of isolated 
details point. 

I beg also to enclose copies of articles, published in the Peking 
Gazette of Febniary 22 and 24,® concerning activities in the 


disaffected provinces. 
I have [etc.] 


Paul S. Eeinsch 


rne No. 893.01/81 

Minister Beinsch to the Becretary of State 

[Extract] 

No. 957 Amekican Leoamon, 

Peking, Pebrmry 2^, 1916. 

Sib: In connection with my telegram of January 29, 5 p. in., I 
haye the honor to make the following report: 

During the early part of Januaiy, wlien the matter of the formal 
proclamation of the monarchy was being discussed, I was informed 
by leading Chinese officials that this act would be accompanied by 
the promulgation of a constitution guaranteeing a representative 
parliament; or, at least, that a formal and explicit declaration would 
be made to the effect that the institutions under the monarchy were 
to include a parliament representative of the- people, elected by pop- 
ular suffrage with a selective qualification, and entrusted with full 
liberty of discussion and a certain power of financial and general 
legislation. I was also informed that at the same time a constructive 
program of governmental action, including financial reform, simpli- 
fied methods of taxation, large works of public usefulness (such as 
reclamation ^d road building) , and measures designed to develop 
agricuitui’e and industry, would be announced concurrently with 
the promulgation of the monarchy. 


•Not printed. 




OHIN-A 


63 


The firm belief was expressed by these officials that the dictatorial 
power held by His Excellency Yuan Shih-kai will be legally distrib- 
uted ^ong the various organs of the Government and that after the 
question oi succession to the headship of the State had been definitely 
settled, the Government could then address itself with undivided 
energy to the task of administrative reform. 

On the basis of such a program, and in view of the fact that the 
Government represented tne only adequate organization in sight, the 
Ministers of the countries mentioned in my telegram had expressed 
their readiness at the proper time to recognize the monarchical gov- 
ernment. * * * 

The confidential information concerning the Legations of other 
Powers at Peking, which was at that time in my possession, indi- 
cated that they all, with the exception of Japan, considered early 
recognition desirable ; it was, however, doubtful how far the action 
of the Allied Powers would be determined by the judgment and in- 
terests of Japan of this matter. 

Towards the middle of January, I was confidentially informed by 
a member of the Foreign Office that the formal accession to the 
throne was likely to be set for February 9. On January 23, how- 
ever^ another member of the Foreign Office called and stated that 
it had been decided to postpone the formal proclamation of the em- 
pire. High officials gave, as the reason for this action, the fact that 
upon the convocation of the Japanese Diet, the Okuma Govern- 
ment would find itself in the face of a violent opposition which 
would undoubtedly take advantage of the formal creation of the 
empire in China to cause difficulties to the Japanese Government, 
which in turn might thereby be impelled to take drastic action in 
China. In order to give no occasion for such developments, it was 
stated that the postponement had been decided upon. * * 

I have [etc.] 

PAUii S. EEnsrsoH 


FileNo.8a3.ai/92 

Minister Seinsoh to the Secretary of State 

No. 958 Amekioan Legatiok, 

Pehing^ Fel>mary 1916. 

Sm: After I had completed dictating the de^atch (No.* 955) of 
today’s date, concerning my audience with the President, Mr. C. 0. 
Wu, a member of the Foreign Office, called on ihe and informed me 
that the President had announced the measures reported in the edi- 
torial from today’s Peking Daily Newa^ enclosed with my No. 965, 
viz ; 

1. In the future the Cabinet will have a weekly meeting under the 
presidency of the Secretary of State for the discussion of important 
matters of public policy; at these meetings the emperor-elect is not 
to be present. 

There wiU be regular conferences between groups of Ministers 
of State and the chief advisers in the respective branches for the 
discussion and elaboration of measures of government. 

The first measure constitutes a step in the devolution of authority 
from the Head of the State to the responsible Ministers; the second 



64 


FOREIGH BEIATIONS 


is the first effort to systematize the cooperation of foreign advisers 
in the work of government. 

It was also stated by Mr. Wu that the measures for the early con- 
vocation of parliament are now under consideration. 

I asked Mr. Wu for the reason why at this time the emperor-elect 
had issued a mandate (translation of which is enclosed with my 
No. 955) announcing the postponement of the formal accession to 
the throne. Mr. Wu stated that this was done in order to put an 
end to constant petitioning and to make it plain that for the time 
being formal coronation was not thought of. He stated that this, 
of course, referred only to accession to the throne; that essentially 
the Government, as far as internal relations are concerned, is already 
a monarchy, although it has not assumed this character in its in- 
ternational relations. 

I have [etc.] 

Pato S. Eeiksch 


File No. 893.00/2370 

Minister Eems.ch to the Secretary of State 

No. 969 AujiRiCAN LnoATioisr, 

Peking, March 9, 1916. 

SiH : In continuation of my despatch No. 947 of February 23 last, 
I have the honor to enclose herewith cojiies of despatches from va- 
rious consular office^ reporting on political conditions in their re- 
spective districts.’^ I have the honor also to enclose five newspaper 
cuttings dealing with the political situation, which appeared in tlio 
Pelting Gazette of February 25 and March 

It is officially reported that the Government troops have scored 
successes in Szechuan, having retaken Suifu and Nachi. The situa- 
tion in Kikiang is still uncertain. 

The greatest uncertainty prevails with respect to the jirovince of 
Hunan. Throughout this province the revolutionaries liave many 
sympathizers, and since the invasion of the southwestern part of the 
province by troops from Yunnan and Kweichow there has been fear 
that the entire province might go over to the revolutionaries. The 
American Consul at Changsha advised the missionaries to withdraw 
from the interior to towns nearer the Yangtze. He now reports that 
the missionaries in Shenchow and Paoching prefer to remain because 
the local situation in those places is quiet. A succe.ss of the Govern- 
ment troops near Yuanchow was reported yesterday. Should Hu- 
nan eventually side with the revolutionaries, such action would un- 
doubtedly give the signal for a general movement throughout the 
Yangtze Valley. Should, however, the successes of the Government 
troops result in pressing back the Yunnaneso into the provinces of 
Yunnan and Kweichow, the Central Government could then offer its 
conditions of peace without fear of having such advances interpreted 
as a sign of weakness. 

I have [etc.] 

PaUI, S. EBTHrSCH 


^ Not printed, 


CHIITA 


65 


File No. 80S.00/2337 

Minister Reinsch to the Secretary of State 

[Telegram] 

American Legation, 
Peking^ March 18^ 1916^ 8 p, m. 

The Government received telegram from the authorities of Kuangsi 
in which they demanded cancellation of the Imperial movement and 
threatened joint action with Yunnan. It is also reported that Lung, 
governor of Kwangtung, counsels settlement with Kwangsi, 

The governor of Kuangsi induced the Chinese Government to sup- 
ply him with money and military stores for the invasion of Yunnan. 
The Government is in the dilemma of either furnishing aid to gov- 
ernors who may turn against it or refusing in case of doubt with the 
result inevitably breaking off relations. 

Before the arrival of the Kwangsi telegram the Government had 
determined in view of its military success in Szechuan to offer favor- 
able terms to the revolutionists ; the new development precludes this 
course and threatens to arraj^ South against North. 

Eeinsch 

Pile No 893.00/2371 

Minister Reinsch to the Secretary of State 

No. 989 American Legation, 

Peking^ March 1916. 

Sir: In connection with my telegram of March 18, 8 p. m., I have 
the honor to enclose, for your information, copies of despatches 
from various consular offices in China, dealing with political con-" 
ditions.^ 

Thei*e are also enclosed newspaper clippings of discussions on the 
monarchial question from the Peking Gazette of the 18th instant, 
on the independence of Kwangsi from the Gazette of March 18 
and 20.® 

The cardinal factor in the present immediate situation is that the 
officials of Kwangsi have sided with the revolutionists, and that the 
military governor of Kwangtung cannot be absolutely counted upon 
by the Central Government. The shrewd manner in which the 
Kwangsi military governor induced the Central Government to sup- 
ply him with funds and ammunition before he declared himself as 
allied with the revolutionaries is ominous and places the Central 
Government in a serious dilemma. It must either, by acceding to the 
demands for funds and war materials on the part of the military 
governoi^, take the serious risk of supplying the revolution with 
means of action, or it will, through refusal to furnish such assist- 
ance, cause an immediate defection of high officials, who may be 
suspected of sympathies with the revolutionists. The military gov- 
ernor of Kwangtung, who has advised the Central Government to 
come to a settlement with Kwangsi, is evidently not to be relied upon 
with assurance by the Centro-l Government. The situation in the 
Province of Hunan is also very uncertain. The current popular 


»Not printed. 




66 


J'ORBIGlT nELATlOKS 


tlicre svoms to favor the revolutionists, and Avhile the 
northern troops have been thus far able to hold in check the invad- 
ing forces from Kweichow, there is no certainty as to how long the 
officials could witlistand the republican movement should there be 
any reverses or should Kwangtung, as well as Kwaugsi, join the revo- 
lutionary cause. 

Just before the announcement of the attitude of Ivwangsi, the 
Peking Government, in view of the success of its military operations 
in Szechuan, was inclined to malm overtures to the Yunnauese 
leadem, promising them paiticipation in the Government, a liberal 
constitution and a cabinet, in return for submission to the Govern- 
ment of His Excellency Yuan Shili-kai. It is believed that there 
was readiness to modify the monarchical scheme to the effect of hav- 
ing His Excellency Yuan assume JLhe position of oiuporor for life, 
or life-presidenl. The action of Kwangsi cut short this attempt at 
a solution of llic difficulties. As there arc now not only tlie few 
leaders around Tsai Ao to deal witli, but those of the two southern- 
most provinces as well, the solution at first suggested has entirely to 
be abandoned. Tliere would now seem to be only one possible solu- 
tion: namely, mediation on the part of the milifcaiy governors of 
central China, cs]}ccially their exccliencios Feng Kuo-cliang and Chu 
Jui, acting in conjunction with men of the standing and influence 
of his oxoollency Tuan Chi-jui, former Minister of War, and his 
excellency Chang Chien. Promises of liberal constitutional arrange- 
ments, even the total cancellation of the monarchical movement, 
probalDly would not save His Excellency Yuan at the present time, 
unless these men were to form a combination which would, on the 
one hand, prevail upon the southern leaders to submit, and, on the 
other, guarantee such promises as would be demanded from the 
President. 

As the Chinese in all parts of the country realize the danger of ^ 
foreign intervention and a civil war threatening permanent division 
of the country, it is probable that an intermedration such as the 
above would be eEective. So strong, however, is the hostility toward 
H. E. Yu^ that it will be difficult to counteract the demand for his 
total elimination, except upon an adequate guaranty against the re- 
sumption by him of purely personal authority. 

It is generally believed that as to forms of government the popula- 
tion of China remains largely indifferent, and that any preference 
existing on the pait of the upper and middle classes rather favors 
the monarchy; the pi*esent movement is generally understood to 
derive its ener^ from pei’soual hostility against President Yuan. 

I have [etc.] 

Paul S. RjEaNsoH 

File No. 803.01/89 

Minuter Beinsoh to the Secretary of State 

[Telegrams — ^Extracts] 

Amurioan Legation, 

Pehing, March 1916, 7 p. m. 

The Government has decided to promulgate mandate canceling 
monarchy. Yuan will remain President, and Hsu Shih-chang, who 
will sign dcgi'ee, as well as other who disapproved monarchy, wiU 



CHIIsrA 


67 


again actively join the Government. Paradoxically, old school 
statesmen will therefore again be in ascendency. There has been a 
^reat deal of earnest thimring, and Peking in the future will be 
likely to make sure of actual public opinion before deciding im- 
portant matters. It is anticipated that revolting provinces may de- 
sire to insist on Yuan resigning, but there is reason to believe form 
of government is now settled. 

Eeiksch 


File No. 893.00/2367 

American Legation, 
Peking^ March 31^ 1916^ midnight. 
There is much uneasiness among the native population here and 
it is reported that certain troops are ready to revolt. I am taking 
every precaution but do not think that harm will befall foreigners 
as the mutiny, if begun, will be innately a political demonstration. 

Eeinsch 


File No. 893.00/2387 

Minister Reinsch to the Secretary of State 

No. 1015 American Legation, 

Peking^ April 1916, 

Sir: In continuation of my despatch No. 989 of March 21, 1916, 
I have the honor to report on the general political situation and 
to enclose copies of despatches from various consular officers in 
China.^ 

There is also enclosed a translation of the mandate, published in 
the Peking Gazette,^ March 23, 1916, cancelling the monarchy, as 
well as clippings from the Peking Gazette^ March 23 and 27, 1916,® 
dealing with the situation in China and local conditions in Peking. 

Being confronted with the defection of Kwangsi province, H. B. 
Yuan Sliih-kai announced, on March 22, that the measures prepara- 
tory to the establishment of the monarchy had been canceled and 
that the petition papers submitted through the Ts’an Chengyuan 
should be returned to that body to be forwarded to the petitioners 
for destruction. 

This sudden and unilateral concession on the part of the Presi- 
dent, without a guaranteed quid pro quo by way of submission to 
the Central Government on the part of the revolting forces, came as 
a surprise. It was due undoubtedly to the fear that unless such a 
step were taken the Province of Kwangtung also would join 
the revolutionaries. The military governor of the province had 
strongly advised the Central Government to compromise. Another 
determining cause was the advice of the State Secretary, H. E. Hsii 
Shih-chang, who had for some time been in retirement. The so- 
called Anhui party in Peking saw an opportunity to regain con- 
trol and oust the Cantonese leaders in whose hands the manage- 
ment of the monarchical movement and the chief influence in the 
Government had been since last August. The President believed 
that the return to the Government of such men as Hsu Shih-chang 


print^. 




68 


POEEIGHT EBIATIOirS 


and Tuan CM-jui would greatlj; strengthen him and would in the 
eyes of the revolutionists constitute that guaranty of good faith 
which the circumstances required. 

It is interesting and paradoxal that the leadei*s of the so-called 
Anhui party, who are old fashioned and reactionary and who have 
little idea of constructive action and modern efficiency, should again 
come back into prominence in connection with the restoration of the 
Eepuhlic. This goes to show to what a small extent constitutional 
questions are really determinants in the present contrqvei'sy. H. E. 
Hsu Shih'chang, personally, has lived in accordance with all tlie can- 
ons of Confucian morality in failing to give positive approval to the 
action of H. E. Yuan Shih-kai in attempting to take the place of 
his former master, the Emperor. This attitude gained for him uni- 
versal respect in China, but its impelling motive was one of personal 
loyalty to the old Imperial family rather than attachment to any 
particular form of government. 

As might have been anticipated, tlie cancellation of the monarchy 
did not satisfy the revolutionists who interpreted it as a confession of 
weakness and defeat; nor, of course, was it welcome to the adherents 
of the President in the provinces, especially the military who felt 
that he was giving away his case without getting anylliing in i-eturn. 
The report that the President, simultaneously with the cancel Iati<m 
of the monarchy, sent a comforting message to the chief generals 
stating that they should not take this too seriously, is undoubtedly a 
fabrication. 

The result was that the President’s act of renunciation of the mon- 
archy had no favorable effect on the situation from the point of view 
of die Central Government. There seems, indeed, to have been a 
lull in the active fighting in the Provinces of Szechuan and Hunan 
where the military leaders appear to be sitting down to await devel- 
opments and to think things over. But the di’y-rot of authority 
continues, and small military leaders in Kwangtnng declared their 
independence, as at Chowchowfu, Swatow, Pabhoi, and some, towns 
in ite vicinity. The importance of this latter movement lies in the 
fact that the revolutionaries have now obtained access to the sea- 
board, which renders easier the supply of war materials and which 
has a distinct bearing on the eventual recognition of belligerency. 

A certain amount of disorganization has prevailed in govern- 
ment circles in Peking since the monarchy was cancelled. The un- 
certainty as to what the President would do filled the official world 
with apprehension while the foreign community feared military 
riots in case Tuan Shih-kai should lose or give up conlrol entirely. 
The loaders of the so-called Anhui party Lad evidently oxi)ect(«l that 
it would be easy for them to proscribe the Cantonese leaders and have 
them banished or executed. The principal men among these are 
their excellencies Liang Shih-yi, Chow Tze-chi, Minister of Agri- 
culture and Commerce and Chu Chi-chien, Minister of the Interior. 
Yang Tu, an organizer of the Chou An Hui whose execution had 
been called for by the revolutionaries, is defended as having been 
only the instriiment in the hands of other men. The Cantonp.se lead- 
ers have impressed the foreign representatives here, and, in fact, 
have proven themselves to he men of real capacity for organization 
and personal efficiency. They had not originally'hcen active in the 



OBrarA 


69 


monarchical movement but had taken it out of the hands of others 
and pushed it with energy and success until foreign interference 
changed the course of events. Contrarj^ to the expectations of their 
opponents they did not at the present critical time take to the woods, 
with the result that somewhat to their amusement the men of the other 
ppty became frightened and began to remove their families from Pe- 
king and to plan for places of safety for themselves. With somewhat 
grim humor, his excellency Chu Chi-chien declared that as conditions 
in Peking were perfectly normal and as any unwarranted show of 
nervo’isness on the part of oificials would tend unnecessarily to dis- 
turb die population, officials would no longer be permitted to remove 
their families from the city at the jpresent time. 

With regard to the eventual solution of the existing difficulties and 
the restoration of national unity, the principle indicated in my last 
despatches still holds good, namely, that some organization will have 
to be effected in central China among the military governors and 
prominent political leaders for the purpose of establishing a policy 
on which all factions can unite. As the leaders in the three revolted 
southern provinces are mainly members of the old Chin Pu Tang, it 
is possible that the Kuo Min Tang may find it attractive to bring 
forward some policy of action which will make the reconstitution of 
the central authority and the unifaction of the country possible. 

I have [etc.] 

PATJIi S. EeINSOH 


[Inclosure] 

■ THE CANCELLATION OF THE EMPIKE 
(From the PeMng Gazette of -March 23, 1916) 

After the establishment of the Min Kuo, disturbances rapidly followed one 
another; and a man of little virtue like me was called to take up the vast 
burden of the State. Fearing that disaster might befall us any day, all those 
who had the welfare of the country at heart advocated the reinstitution of the 
monarchical system of, government to the end that a stop be put to all strife 
for power and a regime of peace be inaugurated. Suggestions in this sense 
have unceasingly been made to me since the days of Kuei Chou (the year of 
the First Revolution, 1911) and each time a sharp rebuke has been adminis- 
tered to the one making the suggestion. But the situation last year was 
indeed so different from the circumstances of preceding years that it was 
impossible to prevent the spread of such ideas. 

It was said that China could never hope to continue as a nation unless the 
constitutional monarchical form of state were adopted; and if quarrels like 
those occurring in Mexico and Portugal were to take place in China, we would 
soon share the fate of Annam and Burmah. A large number of people then ad- 
vocated the restoration of a monarchy and advanced arguments which were 
reasonable. In this proposal all the military and civil officials, scholars and people 
concurred ; and prayers were addressed to me in most earnest tone, by telegram 
and petitions. Owing to the position I was at the time holding, which laid 
on me the duty of maintaining the then existing situation, I repeatedly made 
declarations, resisting the adoption of the advice ; but the people did not seem 
to realize my embarassment. And so it was decided by the acting Li Fa Tuan 
that the question of Kuo4i should be settled by the Convention of Citizens* 
Representatives. In the result, the representatives of the provinces and the 
special administrative areas unanimously decided in favor of a constitutional 
monarchy, and in one united voice elected ,me as the Emperor. Since the 
sovereignty of the country has been vested in the citizens of China and as 
the decision was made by the entire body of the representatives, there was 
no room left to me for further discussion. Nevertheless, I continued to be of 

106413'*— FB 1916 ^10 



70 


FOREIGN EBLA.TTONS 


the conviction that my sudden elevation to the Great Seat would be a viola- 
tion of my oath and would compromise my good faith, leaving me unable to 
explain myself I, therefore, declined in earnest words in order to make clear 
the view which hath always been mine. The said Yuan, however, stated with 
firmness that the oath of the Chief Executive rested on a peculiar sanction 
and should be observed or discarded according to the will of the people. Their 
arguments were so irresistible that there was, in truth, no excuse for mo further 
to decline the ofier. 

Therefore I took refuge behind the excuse of “ preparations ” in order that 
the desire of the people might be satisfied. But I took no steps actually to 
carry out the programme. When the trouble in Yunnan and Kweichow^ arose, 
a mandate was officially issued announcing the docision to postpone the meas- 
iu:e and forbidding further presentation of petitions praying for the enthrone- 
ment I then hastened the convocation of the lA Fa Yuan in order to secure 
the views of that body and hoping thus to turn back to the original state of 
affairs. I, being a man of bitter experiences, had once given up all ideas of 
world affairs; and having retired into the obscurity of the river Yuan (in 
Honan), I had no appetite for tlie political affairs of the country. As the 
result of the revolution in Hsin Hai, I was by mistake elected by the people. 
Reluctantly I came out of my retirement and endeavoured to prop up the tot- 
tering structure. I cared for nothing but the salvation of the country. A 
perusal of our history of several thousand years will reveal in vivid manner 
the sad fate of the descendants of ancient kings and emperors. What tlien 
could have prompted me to aspire to the Throne? Yet, while the representa- 
tives of the people were unwilling to believe in the sincerity of my refusal of 
the offer, a section of the people appear to have suspected me of harboring 
the desire of gaining more power and privileges. Such difference in thought 
has i-esulted in the creation of an exceedingly dangerous, situation. As my 
sincerity has not been such as to win the hearts of the people and my judg- 
ment has not been sound enough to appraise every man, I have myself alone 
to blame for lack of virtue. Wiy then should I blame others? The people 
have been thrown into misery and my soldiers have been made to bear hard- 
ships; and further the people have been cast into panic and commerce has 
rapidly declined. When I search my own heart a measure of sorrow iilis it. 
I shall, therefore, not be unwilling to suppress myself in order to yield to 
others. 

I am still of the opinion that the “ designation petitions submitted througli 
the Tsan Chong Yuan are unsuited to tlie demands of the time ; and the official 
acceptance of the Imperial Throne made on the 11th day of the 12th month 
of last year is hereby cancelled. The “ designation petitions ” of the prov- 
inces and the special administrative areas are hereby all returned through 
the State Department to the Tsan Cheng Yuan, i. o., tlie acting Li Fa Yuan, 
to be forwarded to the petitioners for destruction; and all the preparations 
connected therewith are to cease at once. In this wise I hope to imitate the 
Sincerity of the Ancients by taking on myself all the blame, so that my action 
may fall in line with the spirit of humanity which is the expression of the 
will of Heaven. I now cleanse my heart and wash my thoughts to the end 
that trouble may be averted and the people may have peace. Those who advo- 
cated the monarchical system were prompted by the desire to strengthen the 
foundation of the country ; but as their methods have proved unsuitable their 
patriotism might harm the country. Those who have opposed the monarchy 
have done so out of their desire to express their political views. It may be 
therefore presumed that they would not go to the extreme and so endanger 
the country. They should, therefore, all hearken to the voice of their own 
conscience and sacrifice their prejudices, and with one mind and one purpose 
unite in the effort of saving the situation so that the glorious descendants of 
the S'acred Continent may be spared the horror of internal fight and the bad 
omens may be changed into lucky signs. 

In brief, I now confess that all the faults of the country are the result of 
my own faults. Now that the acceptance of the Imperial Throne has been 
cancelled every man will be responsible for his own action if he further dis- 
turbs the peace of the locality and thus give an opportunity to others. I, the 
Great President, being charged with the duty of ruling over the whole country, 
cannot remain idle while the country is racing to perdition. At the present 
moment the homesteads are in misery, discipline has been disroganled, ad- 
piinistration is being neglected and real talents have not been given a chance. 



cmmx 


71 


When T think of such conditions I awake in the darkness of midnight. How 
('iin we stand as a nation if such a state of affairs is allowed to continue? 
Hereafter all officials should thoroughly get rid of their corrupt habits and 
endeavour to achieve merits. They should work with might and main in their 
duties, whether introducing reforms or abolishing old corruptions. Let all 
be not satisfied with empty words and entertain no bias regarding any affair. 
They should hold up as their main principle of administration the policy that 
only reality will count and reward or punishment dealt out with strict prompt- 
ness. Let our generals, officials, soldiers and people all, all, act in accord- 
ance with this ideal. 


FUe No. 893.00/2370 

Minister Seinsch to the SeGfi’^etary of State 

[Telegrams] 

American Legation, 
PeMng^ April 5, 1916^ 8 p. m. 

Prospects rather more favorable that internal peace may he re- 
stored. Hostilities are suspended temporarily and negotiations are 
evidently proceeding with revolutionists at various points. Peking 
is quiet. 

A new phase has appeared in more friendly attitude of Japan 
towards the Chinese Government. I am informed that several ship- 
ments of arms for the revolutionists have been detained by the Jap- 
anese Govenment. Eealizing the influence of Japan the high Chi- 
nese authorities appear to have made some advances. It is too early 
to determine consequences, 

Eeinsch 


File No. 898.01/96 

American Legation, 
Peking^ April 11, 1916^ 11 p. m. 

Feeling of greater confidence prevails. The realization of the 
fact that the revolutionists are without united policy and that no 
possible presidential candidate could command general allegiance is 
making leaders of all factions consider the temporary retention of 
Yuan. Negotiations with the southern provinces are going on, which 
the fear of Japan [tends to?] accelerate. Yuan himself is discour- 
aged and there is fear that he might lose sense of responsibility if 
pressure should increase. 

Nanking reports considerable unrest and rumors of impending 
declaration of independence. Declaration of independence has ac- 
quired a special, not an actual separatist design, but the determina- 
tion to be specially consulted in negotiations for reconstruction, 

Reinsoh 


Pile No. 893.00/2416 

Consul Peck to the Secretary of State 

No. 88 AmEKIOAN OoNSUIiATB, 

Tsingtau, AprU 11^ 1916, 

Sir : Referring to my despatch No. 86, of March 2^ 1916,* I have 
the honor to state that the plans for the uprising alluded to therein 
as scheduled for this month seem to be progressing for fulfillment, 


* Not printed. 




POKEIQN RELATIOKS 


n 

inasmucli as April 20 is now set for an attack on tlie cities of Kiao- 
chow and Kaomi, both on the Shantung Railway and within the 
neutral area about the leased territory. It is understood that this 
attack will be made by the rebel forces now in Tsingtau, said to num- 
ber about one thousand real revolutionists and two or three thousand 
hired ruifians. After those cities are taken Weihsien is to be the 
ne-gt . point of attack. At this city there is a station of the American 
Presbyterian Mission and a number of Americans reside there who 
mig ht come into some danger if these plans are carried through. 
This place is in the Chefoo consular district. 

A proof of the brazen effrontery with which the so-called rcvolu- 
tonists are acting under the aegis of Japanese official indiffei’ence is 
afforded by the report brought to this office from reliable sources 
that the prominent Chinese merchants here are to be blackmailed by 
them under threat of death. One man, well known to .the writer, 
has been levied upon for thirty thousand taels and has fled to Shang- 
hai. Others are in hourly apprehension of the same demand. The 
only prudent course would appear to be go in a body to the Japanese 
authorities and demand protection, but this they are afraid to do. 

In the meantime in Tsingtau itself there are many more policemen 
on the streets than formerly were visible. Every night two Chinese 
policemen stand guard in front of this consulate, whereas until re- 
cently there were no policemen in this entire neighborhood. Chinese 
of position are afraid to go on the streets after nightfall, but Euro- 
peans are probably in no danger, as any violence actually practiced 
will in all likelihood be carefully calculated and not simple acts of 
brigandage. This office will venture outside of its consular district 
so far as to send informal warning to the American missionaries at 
Weihsien and vicinity of the necessity for watchfulness. 

In this connection I have the honor to state tliat an American citi- 
zen who recently returned from a journey through the southern part 
of the province reports that rumors of the impending incursion from 
the leased territory have already penetrated to that region and that 
the people are extremely apprehensive thereof. Recruits for the 
little army of revolutionists in Tsingtau are coming in from Man- 
churia on every steamer, all Japanese ships, and while it is of course 
possible that the whole project may turn out a fiasco, yet if it is true, 
as reported, that the Province of Ruangtung declared its independ- 
ence of the present Chinese Government a few days ago, pronounced 
successes on the part of the rebels elsewhere will have much to do 
with pcouraging them to a bold attempt in this province. 

It is well to explain in conclusion that the men who are being 
blackmailed here are not adherents of any political party but belong 
te that class of men, large in north China, the members of which are 
indifferent to governmental affairs and adapt themselves with equal 
good humor to any sort of domination, republican or monarchical, 
Chinese or foreign, provided that in return for their compliance they 
are afforded a reasonable amount of freedom to pursue their private 
concerns. Having thrived here under German control they have 
lately, at the behest of the Japanese victors, embarked considerable 
sums in joint Japanese-Chinese business ventures. It is to be 
feared that in the present circumstances the political schemes emanat- 



CKXNA 


73 


ing from Tokyo will interfere with the commercial rapprochement 
engineered by the local military administration, since political tur- 
moil puts an end to commercial prosperity. 

I have [etc.] 

WiLLTs R. Peck 


Pile No. 893 00/2403 

Vice Consul Josselyn to the Secretary of State 

No. 556 American Consulate General, 

Canton^ April 1%^ 1916, 

Sir: I have the honor to inform the Department that General 
Lung Chi-kwang declared the independence of Kwangtung Province 
on the evening of April 6, following the joint representation made 
to him by the gentry and the commercial and educational com muni- 
ties of the province. There was no disturbance in Canton, but the 
announcement of the declaration of independence was celebrated by 
the discharge of innumerable firecrackers. The independence proc- 
lamations were posted all over the city. On the following day all 
the Chinese gunboats in the harbor and the various Government 
offices bore white flags stating: ‘‘General Lung declares the inde- 
pendence of Kwan^un^.” 

The condition of affairs in Kwangtung Province at the present 
time is one of extreme uncertainty. Up to now Canton has been 
free from fighting or disturbance of any sort, but reports from the 
•interior indicate that the conditiohs there are ve]^ bad; in fact, 
they are repoited to be worse than at any time during the first and 
second revolutions. This is particularly true of the North River 
region, along the line of the Canton-Hankow Railway. The entire 
country is infested with robbers, who call themselves “ The People^s 
Army On the 7th instant, these bands of robbers drove away the 
railway guards and government troops from various places along 
the line, held up one of the trains, took the rifles and ammunition 
away from the train guards and also a certain sum of money, amount- 
ing to about $1,800. They are also reported to have taken possession 
of the yamen of the Ying Tak magistrate and either driven that 
functionary away or are holding him as a captive. In consequence 
of this, all traffic was suspended on the line for two days, — ^the 8th 
and 9th. On the 9th, a body of 300 government troops rode up and 
down the line, and on the 10th traffic was partially resumed. How- 
ever, the railway officials are very pessimistic about conditions. 
They state that they can not make their men work under the condi- 
tions prevailing at present ; that the line is unsafe for trains of any 
sort; that until the military give notice that permanent protection 
is established, they cannot be responsible for the safety of any part 
of the line. On the 11th, both the up and down passenger trains 
were robbed and there were skirmishes between the robbers and 
Geneial Lung’s troops at various places on the line. 

In connection with the above, I have the honor to state that there 
is a mission station of the American Southern Baptist Mission lo- 
cated at Y'ing Tak, on the Canton-Hankow Railway. On the evening 
of the 9th, no trains having run on that day, I received a telegram 
frpm Dr. Beddoe of that mission, asking me to arrange with the 



74 


FOREIGN EELAa?lONS 


governor for a special train to convey all tlie missionaries at Ying 
Tak to Canton. I talked with General Lung personally over the 
telephone that evening, and he promised to do everything possible 
to nave the missionaries brought safely to Canton. However, the 
next morning, as trains were running and the missionaries reported 
the conditions as somewhat better, they decided to wait until to-day 
before leaving Ying Tak. 

Eeports from missionaries in the Samshui district also^ indicate 
that robbers are extremely numerous in that region. Within the 
last ten days I have twice received requests from missionaries there to 
have the governor send more troops for the protection of the missions 
from robbers and thieves. 

General Lung Chi-kwang is now waiting for the arrival of JLii 
Jung-ting and Liang Chi-chao from Kwangsi. A gunboat has been 
despatched from Canton to meet these officials, and they are due to 
arrive here very shortly. It is believed that upon their^ arrival Gen- 
eral Lung will turn over charge to Lu, and that he will then leave 
Canton. 

There are at the present time three parties in South China. The 
first consists of General Lung Chi-kwang and his followers. The 
second is an outgrowth of the Progressive Party and is composed of 
the better and more responsible element of the officials, the leaders 
of which are Lu Jung-ting and Liang Chi-chao, at present in 
Kwangsi, and Chen Chun-hsun, ex-viceroy of the Liang Kwang, who 
is at present in Shanghai but is reported to be leaving for Canton 
very soon. It is reported that Mr. Chen has been nominated to be 
the generalissimo of the revolutionary forces, and Chu Chin, for- 
merly a member of the Imperial Party and lately of the Progressive 
Party, will be the commander in chief of the Kwangtung National 
Defence Army. Chu Chin arrived in Canton from Hongkong yester- 
day. 

The third party may be called the extreme revolutionists party 
and is headed by Chun Cheung-ming, who was tutu of Kwangtung 
at the time of the second revolution.^ The bands of revolutionary 
soldiers in the country, who are making the disturbances along the 
line of the Canton-Hanlmw Railway and in other places, are sup- 
posed to be followers of Chun Cheung-ming. He is believed to 
be at jjresent in Hongkong. His representative in Canton at present 
is Wei Pang-ping, who arrived on the gunboat Kiang Ta. He 
has acted as the representative of the revolutionists, and has issued 
general notices informing the public not to entertain any alarm 
and promising complete protection. He has also addressed a tele- 
gram to the consular body stating that he is responsible for the 
safety and good order of Canton, and that the lives and property 
of fopigners will be protected. 

It is rather a difficult matter to forecast in what way these three 
elements will combine, as the leaders of all three ai’e auxious for 
position. 

General Lung is reported to have borrowed a sum of $70,000, 
Hongkong currency, from the Canton-Samshui Railway for the 
purpose of paying his troops. 

I have the honor to enclose herewith translation of General Lung 
Chi-kwang’s Independence Proclamation,® copy in translation of 


•Not printed. 



cnmA 


75 


a circular addressed by General Lung to the various Consuls, and 
of speeches made by General Lung and former Civil Governor 
Chang Ming-chi at a meeting held at the former’s office on April 9 ^ 
A copy of this despatch is being sent to the American Legation 
at Peking. 

I have [etc.] 

P. E. JOSSELTN 


[Inclosure — Translation] 

The Tutu of Kwangtung to Vice Consul Josselyn 

Canton, April 6, 1916, 

Sie: I have the honor to state that, whereas earnest requests have re- 
peatedly been made by the gentry, commercial and educational communities 
as well as other public organizations in Canton that this province «be de- 
clared independent for the sake of averting the calamity of warfare, and 
maintaining peace; and whereas the above communities have jointly selected 
me to be the tutu of Kwangtung for the purpose of upholding order, I, in 
order to preserve the peace of the province, cannot but comply with the 
request made by the various organizations and, consequently, have this day 
proclaimed independence. 

For your information, I beg to state that I have duly issued instructions 
to both the civil and military authorities within my jurisdiction that due 
protection be afforded according to treaties to all foreign merchants and mis- 
sionaries residing in the various ports of this province. I shall be very much 
obliged by your conveying the above to the notice of aU American merchants 
and other citizens residing in this province. 

With compliments. 

(Stamped) Txjtu of Kwangtung 


FUeNo. 893 01/97 

Minister Reinsch to the Secretary of State 

[ Telegrams — ^Extracts] 

American Legation, 
Pehing,^ April 13^ 1916,^ 9 p, m. 

My telegi’am of April 11, 11 p. m. Chekiang has declared inde- 
pendence and several other provinces ai'e likely to follow. The 
situation is complicated and there are many cross-currents as the 
personal ambitions of the various leaders and cliques become in- 
volved. Thus in Canton even after the declaration of independence 
conflicts between the troops and rebels continue. Unfortunately as 
yet there is not a prospect of united action except opposition to 
Yuan which is increasing in bitterness. The situation Peking may 
become difficult. 

Beinsoh 

B^e No. 803.01/99 

American Legation, 
Pehing,^ April 16^ 1916^ 8 p. m. 

Bitter factional struggle Kwangtimg ; Cheldang quiet. In Peking 
Vice President and Yuan cooperate. They contemplate joint action. 
Governors asking the President to withdraw. The latter is looking 
for suitable man to form coalition Cabinet, thus far in vain. 

Reinsch 


a Not printed. 




FOKEIGK EEIATIOKS 


76 

File No S93 00/2405 

Minister Reinsch to the Secretary of State 

No. 1031 

American Legation, 
Pehing^ A'pril IS, 1916, 

Sir: In continuation of my despatch No. 1015 of the 4th instant. 
I have the honor to enclose, for your information, copies ot 
despatches from various consular offices in China, dealing with the 
political situation.^ There are also clippings from, the Peking 
Gazette of April 4, 5, and 10,^ the Peking and Tientsin Times 
of April 15,2 and the Peking Daily Neios of the 18th instant, ^ 
illustrating the political situation as follows : 

On account of the lack of absolute security in the mails, it will be 
impossible for me to go into details concerning the aligminent of 
various prominent officials and public men in connection with the 
problems of the day. While there is a temporary unity among the 
forces of opposition, centered upon hostility to President Yuan 
Shih-kai, yet all observers agree that were the President suddenly 
to retire without having made adequate provision for a regular 
devolution of governmental powers into other hands, it is likely 
that bitter factional struggles would arise. It is to be hoped that 
the constitutionalists will determine upon a definite and unified pol- 
icy both with respect to measures and men. It is believed that were 
the Chinese left to settle the matter, they would probably at present 
not return to armed conflict, but continue the discussions and nego- 
tiations until some basis of permanent adjustment had been found. 
From all parts of China, however, it is reported that the more radi- 
cal revolutionaries are receiving encour^ement and even protection 
and assistance from individuals and officials belonging to another 
nation. 

The most cardinal specific facts upon which the situation at the 
present time hinges are the following : the refusal of the Yokohama 
Specie Bank to pay over to the Chinese Government the surplus 
from the current income of the salt revenue, a procedure which the 
banks of the other four Powers concerned may have to adopt in the 
future in the face of the fact that one of the parties has thus point- 
edly declared a lack of confidence in China’s credit; the impossibility 
of obtaining in foreign markets large loans until conditions shall 
have become more settled; refusal of the China Merchants’ Steam 
Navigation Company to convey Government troops on the Yangtze 
and along the coast; and the declaration of independence of 
Chekiang Province, with the flight of General Chu Jui, one of the 
most trusted military governors m the Yangtze Valley. 

Surmises as to the future development of affairs differ greatly. 
The leaders of the opposition are expecting, during the present week, 
a joint mamfesto, on the part of the military governors in central 
China, calling on President Yuan to retire. There is, however, as 
yet no concrete evidence of the formation of an adequate organiza- 
tion among military and other political leaders for the purpose of 
carrying on the Government and unifying the country should the 
President retire. The present is the supremest test of the faculty 


® Not pnnted. 



OHINA 77 

of the Chinese for political organization that they have as yet 
undergone. 

The local situation in Peking is entirely dependent upon whether 
the President without adequate means will be able to control the 
military, and whether, should he retire, an adequate organization 
would have been effected for the control of public affairs. 

I have [etc.] 

Paxjii S. Eeinsoh 


File No. 893.01/101 

Minister Reinsch to the Secretary of State 

ITelegrams] 

American Legation, 
Peking^ AyrU 1916^ 8 p. m. 

The state of uncertainty continues. Eevolutions have no policy 
but to oust Yuan. The Government, on account of the stoppage of 
the salt income through the action of the Japanese bank and gener- 
ally diminished revenue, will be without^ funds within a month ; a 
very serious situation threatens unless unity and reorganization can 
be effected without delay. Eeports from all parts indicate Japanese 
are actively encouraging revolution, for example, advising Fukien to 
declare independg^nce. Assassinations and looting carried on in the 
name of revolutionists are not reassuring. The army of the President 
is holding out well but its behavior when funds are exhausted is un- 
certain. In Peking the struggle between Anhui and Canton parties 
continues. Military governor of Kiangsu assumes neutral position 

Eeinsoh 


PUeNo. 898.00/2383 

American Legation, 
Peking^ April 1916^ 6 p. m* 

The President has issued mandate declaring that hereafter the ad- 
ministration is to be carried out by a responsible Cabinet, responsible 
in the sense of managing financial and military affairs, without per- 
sonal control of the President who yields his administrative power 
to the Cabinet; also responsible to the Parliament to be elected 
within three months. 

The following are appointed: 

Tuan Chi-jui, Premier and Minister of War; Sun Pao-chi, Minis- 
ter of Finance; Tsao Ju-lin, Minister of Communications, etc. ; Minis- 
ter of Foreign Affairs, Minister of Marine and Minister of Justice 
unchanged. 

The Cabinet represents cooperation among such influential men as 
Feng, Tuan and Liang Shi-yi and their adherents. 

Over against this organization in the Central Government there 
is nothing on the revoluntionary side that could inspire confidence. 
Lack of policy, the attempted assassination of (?) Chi-jui, discord 
among leaders, and the noisy utterances of men of questionable repu- 
tation like Tang Shao-yi, foreshadow chaotic conditions should the 
Central organization fail. Hope for reconstruction which wiU avoid 
foreign interference would seero to lie with the Government 
(itself?). 


KEiNscn 



FOEEIGN EEIATIONB 


78 

File No. 803.00/2418 

Consul Josselyn to Minister Reimch 

[Extract] 

American Consiilate General, 

Canton^ ApriH %li.^ 1916. 

Sir: I have the honor to enclose herewith’ copy, together with 
translation of a circular telegram addressed to the various Consuls 
from the Tutus of the four southern provinces. This telegram was 
received at this office on April 21. 

Owing to the fact that the troops and gunboats in the interior have 
been recalled to Canton in order to strengthen the defence of the city, 
a great many of the outlying districts have been in the hands of the 
so-caUed “ People’s Army.” As the junks have stopped plying, the 
supply of rice has been cut off in many places in the interior. Lately, 
expeditions have been sent to several points and engagements have 
taken place between the soldiers and the People’s Army. Kongmoon, 
which was taken by the People’s Army several days ago, has now been 
recaptured by the forces of General Lung after a considerable en- 
gagement. 

I have [etc.] 

P. R. Josselyn 


[Inclosure — ^Translation] 

The Tutus of Yunnan, Kweichow, Ewangsi and Kwangtnng to the foreign 

Consuls 

We have the honor to state that since the various honorable countries 
have extended their recognition to the Chinese Republican Government, it 
has always been the business of their honorable Diplomatic representatives 
residing in Peking to cement friendly relations with our respective countries, 
for which both our army and civilians are one and all highly grateful. It 
happens that now Yuan Shih-kai, our former President, owing to his attempt 
to commit a treason, has lost his status of President. Although the mon- 
archical form of Government has now been renounced, nevertheless this does 
not exonerate him from the crime which he had already committed. As 
representatives of the army and civilians, we, Tang Chi-Yao and others, pur- 
suant to the law governing the election of President passed and promulgated 
by the National Assembly in September of the second year of the Oh'nese 
Republic, formally announce that we respectfully recognize Mr. LI Yuan-hung, 
the Vice President, to be the President, concerning which a general announce- 
ment has already been made. However, inasmuch as President Li has been 
confined in the midst of our enemy and is unable to obtain his own freedom, 
and as it takes some time before we can have Peking settled down, (we beg 
to say that) in addition to a separate announcement to be made by this 
military government, all the movement and discussion made by President Li 
will only become effective when he has got rid of the tyrannical influence 
of Yuan Shih-kai. As Yuan Shih-kai has been bold enough to commit treason, 
it is not improbable that he may commit a crime by maliciously doing harm to 
the head of our party. In view of the fact that^the various honorable diplo- 
matic representatives have always given due weight to righteousness and 
justice and the promotion of national friendship, we venture to despatch 
this special telegram earnestly soliciting that you may be pleased to watch 
the action which Is taken towards our President Li by Yuan Shih-kai and 
his confederates, the public traitors, and to take such steps as may be neces- 
sary to safeguard the life of the former and to assist him to regain freedom 
and for this magnanimity both our army and civilians will be ever thank- 
ful, We, Tang Ohi-yao and others, acting in our private intercourse, candidly 



OHIISrA 


79 


crave for this assistance and trust this appeal will receive yonr favorable 
consideration. We beg to add that as it is to be feared that telegrams to 
Peking may be detained, we, therefore, despatch this to the honorable Consuls 
at the various ports for transmission. 

With best compliments. 

Tang Chi-yao, Tutu of Yunnan 
Liu Hsiei^-shih, Tutu of KioeicJiow 
Lu Yung-ting, Tutu of Kioangsi 
Lung Ohi-kwang, Tutu of Kiomigtung 


Pile No. 893.00/2384 


Mirdster Reins eh to the Secretary of State 

[Telegrams] 

Ajvxerican Legation', 
Pelting^ Afril 27^ 1916^ 8 y, m. 

The Cabinet has taken over administrative powers, including 
those hitherto exercised by the President’s office; also there has 
been transferred to the Cabinet control over military forces with 
the exception of the President’s bodyguard which it is arranged 
to turn over at an early date. 

The Cabinet at its meeting today decided: provincial assemblies 
and representative national assembly to be called immediately; all 
Government revenues and expenses to be audited, results published; 
dissident elements to be won over without the use of military forces. 

This program meets all demands of revolutionists and while re- 
taining Yuan as tlie formal head of the Government in order to 
prevent upheaval and scramble which would follow his premature 
resignation, evidently contemplates his gradual elimination. In 
view of the hopeless confusion among the revolutionists this Gov- 
ernment program in the hands of influential, responsible officials 
constitutes the most practicable solution in view. 

Eeinsoh 


B’ile No. S93.00/2394 


Ajmerican Legation, 

Peking^ May 6^ 1916^ 8 p, m. 

Government bodies are working quietly to perfect arrangements 
for reunion of all the provinces. Feng Kuo-chang is obtaining by 
telegraphic consultation the sense of the seventeen loyal provinces 
which is then to be submitted to the five dissident for acceptance. 
Tsai Ao is in full agreement with Tuan on aU points except the de- 
mand for immediate resignation of Tuan. The elimination of the 
latter is evidently being prepared to take place as soon as complete 
control of situation is assured to Tuan and associates. Yuan has 
been oflTered asylum by the Japanese but has no intention to accept. 
Loyal cooperation of Tuan and Liang promise good results. 

Reinsoh 


FUeNo. 893.00/2398 

American Legation. 
Peking^ May 10^ 1916^ 9 p. m. 

Referring to previous correspondence pf the American Consul, 
Tsingtau. Revolutionary force of thousand armed men, including 
many Japanese, was landed at Weihsien May 4 from Tsingtau by a 



80 


FOKBIGir KEILATIOITS 


special train and attacked the city which is reported taken. Revolu- 
tionary forces drilled quite openly at Tsingtau. Protection and aid 
by Japanese forces repoi’ted. Japanese controlling railway; how- 
ever, refused to carry Chinese force from Tsingtau on the ground 
that neutrality must be maintained. 

Chinese Govermnent has protested to Japanese Legation and 
Foreign Office but received answer that armed men carried on rail- 
way must have been well disguised and that any military forces 
concerned in this matter acted entirely on their own responsil)ility. 

Looting is reported in places along iShantung Railway. At Tsing- 
tau, beginning May 3, continuous terrorizing through bomb throw- 
ing and incendiary fires in which also Japanese were involved. A 
suspicious circumstance is that many of these attacks were made near 
Japanese quarters supposedly to facilitate intervention and claims 
for damages. 

Reinsch 


File No. 893.00/23»7 

American Legation, 
Peking^ May 11, 1916, 11 p. m. 

Japanese are using agents to create panic Tsinanfu and to urge 
governor general to declare independence. Railway station liead- 
quarters of armed brigands with whom Chinese cannot interfeie 
because station policed Japanese troops. 

Reinsch 


File No. 893.01/105 

American Legation, 
Peking, May 13, 1916, 4 

A conference of representatives of governors of the seventeen 
loyal provinces is called to meet Nanking May 15 by arrangement 
between Feng and the Government leadem. The principal argument 
for consideration is the further continuance in office of Yuan. Events 
in Shantung and the lack of funds emphasize the necessity of def- 
inite understanding on the part of loyal provinces, either to give 
Yuan Government united and sufficient support or to displace Yuan 
and thus invite reunion with the South. In any event, personal 
power of Yuan is destroyed and he would be intained only as formal 
head. 

Reinsch 


FUe No. 893.01/106 

American Legation, 
Peking, May 16, 1916. 8 f. m. 

There is reason to believe that tlie effect of the announcement 
by the southern leaders of the selection of Tsen Chun-hsuan as com- 
mander in chief and Li Yuan-hung as President has resulted in 
crystallizing suppoi't for Yuan, as the northeastern generals do not 

n ose to submit to dictation. Tie conference at Nanking will 
jcisive as to the extent of military support of Yuan; it is feared 
that there is a prospect of predominance of military influence at the 
cost of constitutional rights; still the Peking leaders are firmly 
committed to Cabinet and parliamentary Government. Ihe prom- 



CHINA 81 

inence giTen to_ bravo like Tsen by the revolutionists discounts to 
some extent their professed liberalism. 

In Tsinanfu, Chinese and Japanese ruffians continue reign of ter- 
ror, encouraged by the Japanese, who allow the imported hoodlums 
to make their headquarters at the railway station, and aggravated by 
the timidity of the Chinese governor who will not allow police and 
military to take effective means to suppress rioters because should any 
Japanese be injured intervention would threaten. Dilemma, either 
continuance of rioting until the Japanese declare that it is necessary 
to assume responsibility for maintenance of order in the foreign 
settlement at least, or armed suppression of the disturbances at the 
risk of possible conflict with the Japanese. 

Beustscec 


Bile No. 893.00/2481 

Minister Eeimeh to tJie Seeretary of Staie 
[Extract] 

No. 1081 Ameeioan Legation, 

Pelting^ May 17, 1916. 

Sis: As indicated in my telegram of May 16, the effect of the 
announcement by the southern leaders of their recognition of Li 
Yuan-himg as President and of the organization of a Provisional 
Government in the southern provinces has had the effect, for the 
time being, of crystallizing support for His Excellency Yuan Shih- 
kai among the northern governors. This is particularly apparent 
in His Excellency Feng Kuo-chang. Although he has not in terms 
committed himself, his recent expressions indicate that he holds 
the opinion that the temporary retention of Yuan Shih-kai affords 
the only means of avoiding anarchy. Upon his suggestion, a meet- 
ing of the governors of the loyal provinces has been called to 
assemble at Nankmg on or about May 25 (originally May 15). 
The northern generals seem to look upon the move of the southerners 
as an attempt to dictate without taking counsel, and in this sense 
tliey resent it. 

Whether the representatives of the military governors, when as- 
sembled, wiU manifest sufficient political sense to establish a united 
policy and to avoid giving their action the character of a reactionary 
military movement devoid of constitutional aims remains to be seen; 
and on this same matter hinges the possibility o^f creating a policy 
which either the south may accept in subsequent council at Shanghai, 
or be forced to submit to by the united strength of the northern 
provinces. 

The leaders of the Peking Government are firmly resolved to carry 
through a constitutionalist policy; and while the opposition party 
even more loudly proclaim constitutional aims, their appomtment 
to supreme command of General Chang Chun-hsuan, whose blood- 
thirstiness and unintelligence are notorious, is not entirely reassuring 
as to what might h^pen should they further succeed in shaking 
the authority of the Central Government 



82 


FOKEIGlSr BELATIONS 


The resignation of His Excellency Yuan Shih-kai and the designa- 
tion of Li Yuan-hung as his successor for the unexpired term would 
appear on the surface to form a solution of the difficulties created by 
the loss of prestige and trust on the part of the President. But Li 
Yuan-hung has neTer enjoyed any large influence over the northern 

g vemorSj nor ar ethey at present inclined to submit to his leader- 
ip. This feeling has been accentuated by the action of the south 
in forcing him to the front. From the point of view of weakening 
the support of Yuan Shih-kai and of assuring a basis for united 
action, the last move of the south is considered by most people 
as a tactical mistake. 

The situation in Peking is quiet and the authorities still have mat- 
ters well in hand. Tlrere are, however, rumors of impending un- 
rest among the troops in connection with their monthly pay. Should 
the Government find itself unable tO' make payments pi'omptly, dis- 
turbances are likely to occur. It is possible that the troops, realiz- 
ing the difficulties of the Government and instigated thereto by inter- 
ested parties, may demand extra pay. Every detail of the situation 
is being watched from day to day by the Legation. 

I have [etc.] 

Beinsoh 

File No. 893.01/10T 

Minister Beimch to the Seoretary of State 

[Telegrams — Extracts] 

American Legation, 
PeJeing, May 1^16, 11 y. m. 

Besignation of President Yuan is believed to be impending. It 
has been intimated to me from him that diould he resign he is likely 
to request the hospitality and protection of the American Legation 
as he prefers to go to United States rather than to Japan whose pro- 
tection has been offered him. If thus appealed to, in my opinion, no 
alternative but to afford asylum and to protect transit to a seaport. 

Bbinscbc 


Pile No. 893.01/108 


American Legation, 
Peking, May £5, 1916, 6 p. m. 

Eeferring to my cable of May 24, 11 p. m. For a fuller under- 
standing of the situation I beg to say no assurances of American 
protection will be given but action will depend upon circumstances 
at the time appeal may be made. The President, after his resigna- 
tion, will be treated by the Chinese Government not as a fugitive 
but as a distinguished ex-official. On account of undoubted pres- 
ence of radical revolutionists the Government cannot adequately 
protect the President as he cannot take a Chinese guard into the 
foreign settlements, and for other reasons 


Beinsoh 



CHIITA 


83 


TUe No. 893.00/2442 

Minister Reinsch to the Secretary of State 

[Extract] 

No. 1094 Ameeioan Legation, 

PeMng^ May Sl^ 1916. 

Sir: The Nanking conference adjourned on May 27 without 
producing any decisive result. The conference at first passed a 
formal vote calling upon President Yuan to remain in office until a 
parliament could be assembled. In subsequent discussions, however, 
differences of opinion appeared and it was resolved to invite the 
seceded provinces to send delegates to Nanking. Upon this invita- 
tion being forwarded to them, the leaders of the revolutionaries 
stated that they could undertake negotiations only upon the absolute 
condition of the immediate resignation of Yuan Shih-kai. After 
some discussion of the financial and military situations, which did 
not reveal a great readiness or ability on the part of the provinces 
to come to the assistance of the Central Government, the conference 
adjourned. It failed to produce a definite statement of policy and 
added to the uncertainty of the situation. 

The disorganization of the Government was further aggravated 
by the declaration of independence of Szechuan and Hunan; the 
Province of Shantung while not declaring its independence is also 
a great source of difficulty to the Central Government on account of 
the peculiar situation there. 

While the Central Government has thus been losing ground, there 
is no indication that the secessionists are getting nearer to a unified 
policy of action; so that it is generally believed that should the 
authority of the Central Government crumble entirely there would 
be nothing to take its place. The constitutional action on the part 
of the President of resigning in favor of Vice President Li Yuan- 
hung would have the advantage of implying deference to constitu- 
tional forms, but it is almost certain that unless Li Yuan-hung could 
count on immediate and ample financial support from without, the 
forces of dissolution would so strongly assert themselves that the 
division of China could not be avoided. 

As reported in former telegrams and despatches of the Legation, 
there has been from the beginning a constant participation of 
Japanese in the revolutionary movement; formally disavowed but 
according to all reports actively shielded W the authorities- It is 
not, however, clear whether the Japanese Government has already 
conceived a definite policy as to what to evolve out of the general 
disorganization and confusion which has been brought about. The 
only absolutely definite principle of policy seems to be that Yuan 
Shih-kai must be ousted at any cost. Should this be accomplished 
it may be taken for granted by the aggressive party in Japan that 
the prestige of Japan would be greatly increased and whatever suc- 
cessor might be selected would necessarily feel his dependence on 
the Japanese Government. But m^ny of the observers of affairs 
here believe that it would suit the policy of Japan better still to h£(,Te 
China divided into three or four parts; a Manchu principality com- 



84 


FOREIGN* EELAHONS 


prising Manchuria and Eastern Mongolia unde]* the practical suze- 
rainty of Japan; a southern and a northern with the possible addi- 
tion of a central, Chinese Kepublic, in which the local contrasts in 
China could be more fully developed. While it is at present impos- 
sible to know which of these alternatives is preferred by the Jap- 
anese and whether they have in fact formulated a definite plan with 
respect to the extremely complicated and difficult situation, the ac- 
tion which they have allowed their nationals to take in China, as 
well as the attitude of the banking institutions controlled by th^ 
Japanese Government in aggravating the financial embarrassment 
of the Chinese, indicate that an attempt will be made to utilize the 
confusion and helplessness of China so as to make its dependence 
upon Japan plain to all. 

I have [etc,] 

Paul S. Eeinsoh 

File No, 893.00/2424 

Minister ReinscK to the Secretary of State 

[Telegrams] 

American Legation, 
Peking^ June 6^10 f, m. 

Having been assured of support of Tuan and the Cabinet, General 
Li intend to take oath of office tomorrow morning as President.® 

The British and Allied Ministers have meanwhile jointly ap- 
proached the Foreign Office and Tuan as Premier with an intima- 
tion of their hope that the presidency would be allowed to devolve 
constitutionally upon Li and that the Government would be able 
to accomplish the transfer of authority without disorder. The 
British and Belgian Ministers have informed the Legation that 
Tuan gave satisfactory assurances on these points and furthermore 
expressed his hope that the new situation would make possible 
reconciliation of the seceding provinces. 

Keinsoh 

Pile No. 893.00/2427 

American Legation, 
Peking^ Jime 9^ 1916^ 8 p. m. 

All the northern provinces including Chekiang have accepted 
succession of Li to the presidency. As the southern provinces had 
before proclaimed him as the rightful Ppsident he holds the reins 
of Government without opposition. It is, however, expected that 
southern provinces will demand changes in the personnel of Cabi- 
net ; there are many candidates to be considered and difficulties may 
not be avoided in trying to satisfy all parties. 

Reinsoh 

File No. 893.00/2434 

American Legation, 
Pehmg^ Jum IS^ 1916^ 1 p. m. 

Official ^atement reported given out in Japan to the effect that 
foreigners in China desire more protection has no foundation. Con- 

^SoG Doath of President Yuan Shili-kai and succession of Prosldont LI Yuan-hung, 
post, p. 08. 




CSHOTA 


85 


ditions here are again perfectly normal, with no apprehension on the 
part of foreigners and with a feeling of confidence in assured reali- 
zation of economic political progress under the Republic. 

Reinsgh 


File No. 893.00/2462 

Minister Reinsch to the Secretary of State 


'No, 1119 Ajvieuican Legation, 

Peking^ June 191b. 

Sik: I have the honor to report that on June 12, the American 
Consul in charge at Tientsin telegraphed to the effect that the 
Japanese had asserted that the French commandant had requested 
the placing of Japanese troops to guard the railway station in the 
native city and the Yangtsun bridge on the railway to Peking; the 
American commandant had been requested to x'eply as to his concur- 
rence in the plan. 

I instructed the Consul to advise the American commandant to 
reply that any proposal relating to changes in the force patrolling 
the railway, should be reported to the Dean of the Diplomatic Corps 
in order to be submitted to the Ministers interested for their dis- 
cussion and eventual approval. 

On the merits of the case, there does not seem to be any need for 
foreign military at the railway station at Tientsin. The placing of 
a Japanese guard there would only tend to irritate the Chinese, al- 
though the Japanese would probably consider it as contributing 
materially to their prestige. 

It is somewhat difficult to understand the motive of the proposal 
of the French commandant. However, during the apparent uncer- 
tainty of conditions of June 6, the French Minister brought to 
Peking about sixty of the French Indo-Chinese troops stationed at 
Tientsin. The commandant there may feel that from a military 
point of view his forces are insufficient. The political aspects of 
the matter, however, are such that it is not in the interest of France, 
or any other western Power, to make a change which in the eyes of 
the Chinese will seem a support of the pretensions of Japan. 

If the change is actually proposed by the French Minister *and 
commandant, it will, of course, have to be accepted. 

I have [etc.] 


Paul S. Reinsch 


B'ile No. 893.00/2444 

Minister to the Secretary of State 

iiTelegrain] 

Aaiertoan Legation, 
Peking., June 30^ 1916 6 p. m. 

Tuan Chi-jui having withdrawn his opposition, the President 
last night issued mandates summoning Parliament to resume sessions 
on August 1, and to' elaborate permanent Constitution, the Nanking 
provisional Constitution and the presidential, election law of October 
fifth, 1913, to continue in force; all treaties concluded subsequent to 
106413**— rul916 ^11 



86 


FOREIGN EEIATIOKS 


dissolution of Parliament in May, 1914, are to be recognized as valid 
as also all laws and mandates except those specifically canceled by 
mandate; all laws relatii^ to Li Fa Yuan and citizens convention 
canceled hereby and the Council of State and censorate attached to 
administration court abolished; Tuan reappointed Premier. 

Eeinsoh 


File No. 893.00/2491 

Minister ReinscTi to the Secretary of State 

No. 1143 American Legation, 

Peldng^ July 1916. 

Sir: In continuation of my despatch No. 1117 of the 14th ultimo, 
I have the honor further to report on the political situation and 
to enclose, for the information of the Department, copies of the 
following reports from the various consular offices in China.® There 
is also enclosed an article, reprinted in the Peldng Daily News of 
July 12,® giving an account of the political action of the navy from 
the point of view of its leadei's. 

Immediately following the death of President Yuan Shih-kai, and 
continuing for about two weeks thereafter, there was a lull in the 
political controversies which promised fair for cooperation among 
the different political elements. But the opportunity was not taken 
advantage of by the President, who had not developed a definite 
policy of handling the situation and who was perplexed by con- 
tradictory counsels. Being of an optimistic temperament, ho was, 
however, hopeful that all difficulties would shortly he settled. Mean- 
while, as time elapsed, the mutual antagonisms which had preceded 
the death of President Yuan again emerged, and the leaders of the 
different factions became more and more specific in the demands 
which they made upon the Central Government. Having at first 
declared that the withdrawal of Yuan would completely satisfy 
them, the southern leaders now demanded the revival of 'the Pi'o- 
visional Constitution of 1912, and the resurrection of the Parliament, 
whose members’ legal terms of office, so far as the lower house is con- 
cerned, had already expired by limitation of the organic law. Still 
held in the background, but frequently hinted at, was the demand 
for the punishment of the leaders of the monarchical movement. 

The principal members of the last Cabinet of President Yuan 
and the other political leaders who had supported him, were loyal 
in their efforts to support the legal authority of His Excellency 
Li Yuan-hung and to hand the Government over to their successors 
with as little disturbance as possible. On June 28, the day of the 
funeral of Yuan Shih-kai, I had an interview with the I^rosidont 
during the afternoon, at which time he expressed his assurance of 
having found a way to secure the cooperation of all factions in the 
support of the Government, tie stated to me at this time that 
while he would, by mandate, declare the Provisional Constitution 
of 1912 to be in force and while he would summon the rump parlia- 
ment^ it was his intention that the latter should 'act only in a quasi- 
constituent capacity for the purpose of amending the parliamentary 


®Not pi’intcd. 



CHINA 


87 


election law to the end of reducing the membership in that body 
one-half; experience had shown the membership of the present 
Parliament to be too large for the efficient conduct of business. 
I asked the President whether he did not consider it impossible 
to conJBme the Parliament, when summoned, to so limited a function 
and whether it was not rather to be expected that it would attempt 
to exercise a controlling power in the Government, and whether, 
uidess there was a definite policy and recognized leadership, there 
might not be danger of confusion. The President insisted that 
the Parliament would be confined to the specific function indicated 
by him. I was astonished to have the President insist, when the 
question of the legality of the Parliament was under discussion, that 
the term of only one-half of the members of the lower house had 
expired; this was a plain error, as the organic law is explicit in 
making the term of all members of the lower house three years. 

The counsellors who have the greatest influence with the President 
are mostly men belonging to the Chin Pu Tang. It has been their 
effort to induce the President to recall the rump parliament in 
which the Chin Pu Tang faction has the large majority and also to 
prevail upon him to appoint members of their party to the governor- 
ships in the provinces. The activities of these leaders have caused 
the antagonism between the Chin Pu Tang and the Kuo Min Tang 
to revive, with the result that the Kuo Min Tang leaders in Shanghai 
are beginning to take a position of distinct hostility to the Chin Pu 
Tang, a frame of mind which has, however, revealed itself more in 
the inner intrigues than by outward manifestation. 

The most remarkable incident during the last few weeks was the 
declaration on the part of the navy, under the leadership of Admiral 
Li Ting-hsin, to the effect that while it was completely loyal to the 
President, it declared its independence of the Cabinet at Peking, and 
would persist therein until certain political demands had been ful- 
filled. A defense of this action on the part of the navy is contained 
in the enclosed article from the Peking DaUy News of July 12,* 
but, aside from the more amusing features of the situation, it is a 
somewhat remarkable commentary on Chinese political thinking and 
acting that the navy should have been made use of for playing 
politics in this manner. 

The effect of all these activities and intrigues upon the military 
party in the north may easily be imagined. With a definite and just 
policy announced and enforced by the President, the military would 
have had no alternative but obedience, as they have lacked the means 
for a revolt. But they must also be given the credit for having 
loyally accepted Li Yuan-hung as the legal occupant of the presi- 
dency. It must also be considered that the military leaders of the 
north have under their control about 200,000 troops, among whom 
no sign of disloyalty has as yet appeared. They are, at all events, an 
element to be considered. The interpretation of the southern leaders 
is that the military must be treated with suspicion, must be excluded 
from all influence over the Government, and may have to be punished 
for complicity in the monarchical movement. No matter how much 
one may sincerely sympathize with any genuine effort to place the 
Government of China on a purely civil basis and to confine the military 


. ^Not printed. 




88 


FOREIGK BETATIOyS 


to their proper functions, after a thorough reform of the abuses in 
the army, yet it would appear to be a policy of doubtful wisdom to 
drive these men into a hopeless opposition. It would seem far better 
thoroughly to reorganize the Government first, and gradually to in- 
troduce the reforms called for in the military system. It is to be 
feared that if the military are driven to extremes, they may again take 
refuge in the monarchical movement and this time restore the Manchu 
ruler, a step which would probably entail the division of China. 

On June 30 , the appointment of the following Cabinet was an- 
nounced : 

Minister of — 

Foreign Affairs, Tang Shao-yi (Chen Chin-tao to act) 

Interior, Hsu Shih-ying 
Finance, Chen Chin-tao 
War, Tuan Chi-jui 
Marine, Cheng Pi-kuang 

Justice, Chang Yao-tseng (Chang Kuo-kan to act) 

Education, Sun Hung-yi 

Agriculture and Commerce, Chang Kuo-kan 

Communications, Wang Ta-hsieh 

This represented an offer to obtain cooperation between different ele- 
ments and it achieved a complete exclusion of former monarchical 
leaders from the Government. But Mr. Tang Shao-yi, notwithstand- 
ing the promin ent part he has taken "in urging action upon the Gov- 
ernment, has thus far declined to take responsibility. At the present 
time the Acting Cabinet is composed of the following members : 

Premier Tuan Chi-jui 

Ministry of — 

Foreign Affair^ Tang Shao-yi (Chen Chin-tao acting) 

Interior, Sun Hung-yi (Hsu Shih-ying acting) 

Finance, Chen Chin-tao 
War, Tuan Chi^ui 
Marine, Cheng Pi-kuang 

Justice, Chang Yao-tseng (Chang Kuo-kan acting) 

Education, Fan Yuan-lien 

Agriculture and Commerce, Chang Kuo-kan 

Communications,” Hsu Shih-ying " 

The temper of the southern leaders at the present time is to be satis- 
fied with nothing short of their complete and recognized ascendency. 

During last night a mandate was prepared for issue, providing for 
the arrest and trial of some of the principal leader in the monarchi- 
cal movement, as follows: Yang Tu, Sun Yu-chun, Ku Ao, Liang 
Shih-yi, Hsia Shou-tien, Chu Chi-chien, Chou Tsz-chi, and Hsueh 
Ta-ko. It is to be feared that the political effect of this action 
will be bad. Kot long ago, in a Cabinet meeting, his excellency 
Tuan Chi-jui, the Premier, stated in so many words that if the 
monarchists were to be punished very few would be exempt, as 
practically all officials of the Chinese Government had either sup- 
ported or acquiesced in the movement. Therefore, unless the 
mandate is to be intei^reted as a shot in the air, to satisfy the 
cry which has been raised in the south for the punishment of the 
monarchists; and if it is to be followed by other attempts at 



CSHU^A 


89 


punishment, it might easily cause a dangerous division to be 
brought about. The mandate as published will probably have little 
practical effect, as the men concerned are now resident in British 
concessions or colonies, whence they will not be extradited on politi- 
cal grounds, but only upon a frima fade criminal case ^ing 
fullj^ established. It is stated that the attempt to .secure the ex- 
tradition of Mr. Liang Shih-yi will be welcomed by him, as it 
would make necessary the bringing into the court of the whole 
status of the Bank of Communications, and the fact that under 
former Ministers of Finance, especially Messrs. Hslung Shih-ling 
and Chou Hsueh-shih, the bank had advanced large amounts of 
money to the Government. 

Among the prominent Kuo Min Tang leaders, only Mr. C. T. 
Wang, ex- Vice Speaker of the Senate, has thus far come to Peking 
to discuss the situation with the President. Mr. Tang Shao-yi 
stated to me at Shanghai that he would come in a private capacity 
after August 1st, i. e., after Parliament had assembled. Other 
Kuo Min Tang leaders also expect to come to Peking at that time. 

The assembling of Parliament and the conditions consequent 
thereon is likely to test the capacity of the Chinese leaders for 
effective political action. The cardinal fact in the situation is 
that such a thing as a loyal opposition is not understood or ap- 
preciated in China: each party desires full control, in the same 
spirit as it was desired in his day by President Yuan, i. e., through 
suppressing and virtually outlawing all opposition. The political 
lexers of the various factions must learn either to cooperate with 
each other for the time being, until the Government has again se- 
curely reestablished its authority throughout all the provinces, 
or to adopt party Government with the understanding that parties 
may be altematdy supei-seded by each other and that the func- 
tion of a party is to govern well while in power, but not to look 
upon opposition to it as treason to be suppressed. It would appear 
that during the past year Chinese leaders have done a great deal of 
thinking on political matters. How far they have really learned to 
appreciate the essential requirements of political action imder a 
representative government remains now to be seen. 

The situation in some of the provinces, as is apparent from the 
consular reports herewith enclosed, is still very much confused. 
With the exception of some parts of Honan, the local troubles have 
nowhere taken on an anti-foreign character: in that province the 
activities of the Big Knife Society recall in a small way the 
troubles of 1900 and, therefore, bear a close watching. In Szechuan, 
Hunan and especially Kwan^ung, bitter partisan struggles are 
going on. Chekiang is quiet, as is, temporarily. Shantung. 

On the whole, the situation, while stiU full of uncertainty and 
containing possibilities of future trouble, may be said to promise 
a fair chance of reestablishing the authority and normal activities 
of the Chinese Government m all parts of the Eepublic, as the 
Head of the State is now formally recomized everywhere. But 
in the solution of individual difficulties and in the selection of men 
who are to exercise leadership, a great deal of controversy and 
trouble may naturally be expected. 

I have [etc.] Paxtl S. RnrisrsaH 



FOKEIGlir B.EIAaaOKS 


90 

File No. 893.00/2512 

Mi'/iistcT Rein^ch to tlie Secrctai^ of State 

No. 1155 Aimeeican Legation, 

Pelmig^ JiiLy 31^ 1916. 

Sir: In continuation of my despatch No. 1143 of the 14th instant, 
I have the honor to submit further observ^ations on the present po- 
litical situation. It is difficult to give any clear and definite in- 
formation, as there are a great many currents and countercurrents 
of intrigue and influence, but the following notes are submitted for 
any value they may have in keeping the Department informed. 

There are enclosed herewith two clippings from the Pehmg Gazette 
of to-day, dealing with the present ^tuation.** The breach between 
the Chin Pu Tang and the Kuo Min Tang has become still more 
apparent, and for the time being the advantage of po-litical tactics 
seems to lie with the latter party. The rump parliament, which 
is to be convened to-morrow, will probably be controlled by the 
Kuo Min Tang leaders, who have secured the allegiance of His 
Excellency Sun Hung-yi, Minister of the Interior. This politician 
is not generally credited with a very high character; he formerly 
had Chin Pu Tang affiliations, but recently a violent wordy encoun- 
ter occurred between him and Tang Hna-lung in Shanghai, in which 
they expressed quite frankly their opinion of each other. This sign 
of an evident breach was followed by Sun’s allying himself with the 
Kuo Min Tang, under Tang Shao-yi. It is believed that he carried 
with him nearly fifty per cent of the Chin Pu Tang parliamentarians, 
most of whom arrived under his aegis in Peking last week. 

The game of the Chin Pu Tang to have their men appointed gov- 
ernors of the provinces in order to controTthe next parliamentary 
election has evidently aroused the other party, which now aims at 
not only controlling the present inmp parliament, but the entire 
Government, including the provinces. The Chin Pu Tang members 
in parliament seem to be flirting with tlie monarchical members. 
The monarchists are, however, at heart entirely suspicious of and 
thoroughly opposed to both of the revolutionaiy parties. 

His Excellency Tuan Chi-jui is kept in the Cabinet in order to 
control the military. It is believed that Tang Shao-yi desires to 
make His Excellency Feng Kuo-chang Minister of War. Tlie other 
generals would, however, not be favorable to such a proposal. The 
military are maintaining a waiting attitude. Most of them seem to 
be persuaded that, with all the partisan bickerings and intrigues 
likely to be consequent upon the assemblage of Parliament, neither 
of the revolutionary parties will be able to maintain itself and tliat 
the balance of power will be in the hands of the military. Some of 
the latter are plainly in favor of a monarchical restoration. His 
Excellency Hsu Shih-chang, the ex-Premier, appeal's to be busier 
than he has been for years; his visitings and activities are believed 
to be relative to his loyalty to the Ching Family. 

A Cabinet Minister stated to me that telegrams had been dis- 
covered which revealed an intrigue on the part of Liang Chi-chao 
to put Tuan Chi-jui in the place of President Li. Such a policy if 


*Not pdnted. 



cmmA 


91 


really pursued could only be accounted for by a desire of Liang 
Ohi-chao to ally himself with the military, utilizing the control ex- 
ercised by General Tuan. 

It is generally expected that should Tang Shao-yi become Pre- 
mier, he would try entirely to dominate the political situation, with 
the result of thoroughly antagonizing the military party. In order 
to strengthen himself, he has come to an understanding with the 
most radical wing of the Kuo Min Tang, including Sun Yat-sen and 
Huang Hsing. He has of late constantly expressed himself as per- 
suaded that the Japanese Government has entirely changed its at- 
titude toward China ; and that, having realized that a conquest or 
coercion of China is practically impossible, Japan will now pursue a 
policy of friendly cooperation. It would therefore appear that Mr, 
Tang is actually desirous of giving the Japanese the impression that 
he desires to cooperate with them. What his attitude would be 
after he should feel himself assured in power with certain assistance 
from Japanese sources, would remain to be seen. It is also believed 
here that before accepting the premiership, Mr. Tang would assure 
himself specifically of financial support from Japanese or other 
sources. 

The situation for the next few weeks and also the political future 
of China in general is therefore quite uncertain. It is to be hoped 
that Parliament will disappoint its critics by not attempting to in- 
terfere with every branch of the Government, and that it may sub- 
mit to the leadership of responsible and experienced men, them- 
selves animated by a desire to put an end to factional fights and to 
begin constructive work. Most observers would say that this is 
probably too much to expect, yet there is undoubtedly a chance at 
hand to take a step in advance in the working of representative in- 
stitutions in China, notwithstanding all the difficulties in view. 

I have [etc.] 

Paul S. Rmnsoh 


FUe No. 893,032/13 

Mmister Reimoh to the Secretary of State 

No. 1162 American Legation, 

Pehing^ August 1916. 

Sir: I have the honor to report that the National Assembly was 
convoked yesterday and opened by His Excellency the President, 
who also on that occasion took a formal oath of office. 138 Mem- 
bers of the^ Senate and 318 Members of the House of Representa- 
tives were in attendance; this is less than a quorum in both eases, 
but the early arrival of additional members is expected. Meanwhile 
the Houses will devote themselves to the work of organization and 
the selection of committees. There is enclosed herewith an account 
of the opening of the Parliament from the Peking Gazette of to- 
day as well as a copy of the most recent picture of the President, 
published in the same paper. 

I have [etc.] 

Pato S. Retnsch 


• Not printed. 




92 


FOKEIGIT EEIATTOK-S 


File No. 893 00/2533 

Minister Reinsch to the Secretary of State 

No. 1187 American Legation, 

Pelting^ September 1916, 

Sir: In continuation of my No. 1155 of July 31 last, I have the 
honor to report on the political situation of the Central Government. 

The Parliament assembled and was organized in both Houses on 
August 1. The members have since been occupied mainly^ in put- 
ting themselves in touch with each other and with the political con- 
ditions. A great deal of negotiation has gone on, back and forth, 
between members of Parhament and^ the Cabinet, especially the 
Premier and those members of the Cabinet who are also members of 
Parliament, such as Sun Hung-yi and Ku Chung-hsiu. These dis- 
cussions and transactions have thus far revolved mainly about the 
question of the confirmation of the Cabinet by Parliament, and about 
the permanent relations to be established between the two bodies. 
The Cabinet was approved in full by the House of Eejiresentatives 
on the 1st instant and by the Senate to-day. 

The Cabinet was not confirmed as a unit, but each member was 
individually voted on, the Representatives exercising their personal 
judgment in each case. The weakest support was given to the 
Minister of the Navy and the Minister of Communications. In the 
case of the former the opposition was due to the fact that the mem- 
bers of Parliament would have preferred to see Admiral Li Ting- 
hsin, who engineered the declaration of the independence of the 
navy in June, appointed to this posh 

The opposition to Mr. Hsu SMh-ying, the Minister of Communi- 
(‘ations, was due to moi*e deep lying causes. Very bitter attacks 
were made on this official in the press, of which some of the cut- 
tings herewith enclosed are examples.^ He was attacked both on 
the score of alleged lapses in the past and on the manner in which 
he had reorganized his Ministry. A shoit time ago His Excellency 
Hsu Sluh-ying announced that he had effected economies to the 
extent of $900,000 a year in his Ministry by means of dismissing 
superfluous employees and by consolidating bureaus and depart- 
ments. He had, however, in the process of doing this dismissed a 
number of the most prominent officials in the Ministry who were 
favorably known for experience and competence, and had replaced 
them with persons about whom there was no such favorable knowl- 
edge. The criticisms which vrere leveled against him, however, had 
a deeper cause. It was believed that he hid undertaken to control 
all the branches of the important Ministry of Communications in 
favor of the Anhui Group, i. e., the immediate personal followers 
of the Premier; in other words, that he was acting in favor of the 
Military Party as opposed to the interests of the parties whose 
strength lies in Parliament. It is stated that the Premier used his 
entire personal influence to insure the confirmation of his excel- 
lency Hsu. 

Mr. Chang Yuoh-tsen, nominee for the Minister of Justice, had be- 
come involved in the opium scandal in Shanghai, in connection with 


*Not printed. 




onmA 


93 

the seizure of a lar^’e quantity of opium in the baggage of the party 
of Yunnanese politicians with whom Mr. Chang arrived in Shang- 
hai. He has stoutly maintained his innocence in this matter, and 
evidently the Government is sharing his point of view, although it 
has not made an altogether good impression that a man who has not 
been entirely cleared before the public from suspicion of complicity 
in so disgraceful an affair should have been made a member of the 
Cabinet. 

During the first month of its renewed life the Parliament has not 
done anything to justify the unfavorable expectations of its critics; 
it has not acted in a radical or irresponsible fashion, and its mem- 
bers subordinated their private and partisan views to the urgent need 
of national unity and cooperation. The Military Party has little 
confidence in the ability of the Parliament to improve the national 
situatiqn, but they are pursuing a waiting policy and are giving 
Parliament a chance to show what it can do. In case general in- 
capacity should reveal itself, the military element would undoubt- 
edly strive to take matters in hand and would bring back that group 
of more experienced officials who were recently ousted. Current re- 
ports concerning the action of the new Parliamentary Ministers are 
not very reassuring; in the case of two or three of them there seems 
to be a venality abnormal even in China. Should such tendencies 
be given free rein, the downfall of the present regime, after the crea- 
tion of added confusion, would be inevitable. The better element in 
Parliament and in the press are striving to counteract and eliminate 
such evils. There are numerous indications that beneath the surface 
a very strong and widespread movement is going on to the end of 
organizing a monarchical movement with the assistance of the Mili- 
tary Party, and that should the present Government come to an 
impc^se such a movement would be launched. The organizers of 
this movement are receiving encouragement from Japanese sources 
and many of the most experienced observers believe that a restora- 
tion of the Manchu House would be welcome to the Japanese Govern- 
ment. 

The financial situation of the Government is very difficult. The 
provinces have not as yet been prevailed upon to give adequate 
financial support to the Central Government ; in fact, a great many 
of them are making insistent demands for the repayment of ex- 
penses and losses incurred during the recent revolution. The two 
national banks have not found it possible to resume specie payment 
of their notes issued by the Peking branch. In order to meet the 
urgent needs of the Government there has been a continuous new 
issue of Bank of China notes, amounting to about silver $5,000,000, 
during the last two months. It seems unlikely that financial sta- 
bility can be restored without a foreign loan; the amount needed to 
effect this result isj however, relatively small considering that the 
underlying economic conditions of the country are sound, waiting 
only for the reestablishment of national credit, in the event of which 
very considerable business activity would be resumed in aU parts of 
China. 

As at all times, the domestic situation in China is overshadowed 
by dangers threatening from abroad. All parties seem to be per- 
suaded that a policy of friendly cooperation with Japan within 



u 


I'OKEIGH BEtATIOl^S 


limits is desirable. The radical revolutionaries, as well as many of 
the moderates, including his excellency Tang Shao-yi, have given 
frequent expression to tneir complete trust in Japan and their de- 
sire to cooperate with that country. Even the leaders of the Mili- 
tary Party realize the necessity of working to a certain extent in 
that direction- The Japanese, on their part, have been playing soft 
tunes of friendship and mutual helpfulness. 

There are also enclosed herewith a number of cuttings from the 
Peking Gazette^ which are reports of the action of the National 
Assembly, or discussions of the relations between the Cabinet and 
Parliament, and of current politics. There is also a copy of an in- 
terview with Mr. Liang Chi-chao, dealing with these matters. In 
this connection, I also have the honor to refer to the articles pub- 
lished in the August number of the Far Eastern Review^ of which 
only an advance copy has so far reached the Legation. 

I have [etc.] 

Paul S. Reinsoh 

File No. 893.00/2534 

Minister Reinseh to the Secretary of State 

[Extract] 

No. 1188 Ameeican Legation, 

PeMng, Seftemher 5, 1916. 

Sie: Supplementing previous reports on tlie general political sit- 
uation in China, and referring particularly to the Legation’s des- 

g atch No. 1143 of July 14 last, I have the honor to enclose, for 
le information of the Department, copies of the following Consular 
reports on the oonditions prevailing in the various provinces.® 

For the rest, the enclosed reports present a fair indication of the 
confused sets of conditions prevailing in the neighborhood of Nan- 
king, of Hankow, of Changsha, of Chungking and of Canton. These 
several confused situations are notable in the degree to which they 
are local — ^involving matters primarily provincial and only sec- 
ondarily related to the affairs of the Central Government or of other 
provinces. For the most part, the matters here reported (and other 
^[uestions of current interest, such as the Shanghai opium scandal, 
in which certain members of Parliament from Yunnan were de- 
tected in the attempt to smuggle in large quantities of opium under 
cover of the courtesies of the port, and under circumstances which 
cast some suspicion upon the newly appointed Minister of Justice) ; 
the sporadic rioting at Hankow ; the scrambling for provincial offices 
in Szechuan; the somewhat similar interplay of local influences in 
Hunan, — all these incidents, though they are alike in that they in- 
volve an element of disregard for the authority of the Central Gov- 
ernment, create an impression of utter incoherence, lack of coordi- 
nation of any sort, and heterogeneity of local interests. 

The one set of events which bears a national, no less than a pro- 
vincial character is that centering about Canton, where Lung Ohi- 
kuang, holding the office of military governor and acting as civil 
governor, under the authority of the Peking Government, pending 


* Not printed. 




UJCLllN A 


£/t/ 


the arrival of successors in each capacity, has been besieged by forces 
acting under the authority of the military council of the recently 
seceding' provinces, although that council had long ago given notice 
of its adherence to the Government under President Li Yuan-hung, 
and declared the purpose of its existence at an end. This extraordi- 
nary situation (which seems to have become possible only by reason 
of the detestation which General Lung has aroused during his tenure 
as governor of Kuangtung) has been the most obvious, if not actu- 
ally the most serious obstacle to the assertion of the due authority 
and control over the provinces by the Peking Government as newly 
constituted under President Li. It is to be hoped that the taking 
over of the office of civil governor by Chu Ching-lan (lately gover- 
nor of Heilungkiang) on August 25, and the assumption by Gen- 
eral Lu Yung-ting, within the past few days, of command over 
the troops hitnerto acting against General Lung, indicate a settle- 
ment by which full control over the civil and military affairs of the 
province will again be exercised, without opposition, by appointees 
of the Peking Government. 

I have [etc.] 

Pattl S. Reinsoh 


File No. 893.00/2543 

Consul Peek to the Seoretary of State 

TSo, 113 American Consuxato, 

Tsingta/a, September 2d, 1916. 

Sir : I have the honor to state that according to local reports the 
so-called revolutionist troops at Weihsien and Choutsun have ar- 
rived at some sort of an understanding with the Central Govern- 
ment and have submitted to it. This despatch has been delayed some 
days in the effort to leyarn the details of the agreement, but even 
persons who have been to those cities have been able to do little but 
confirm the report of the surrender. A gradual disbanding is going 
on and part of the forces will be incorporated with the Chinese 
Army. 

It is reported that many of the brigands and other recruits from 
Manchuria are being returned thither. The volunteer constabulary 
organized around Weihsien to protect the residents from the revolu- 
tionary troops are also being disbanded and more peaceful conditions 
are being established. 

A copy of this despatch has been sent to the Legation at Peking 
and to the Consulate at Chefoo. 

I have [etc.] 

WILLTS R Peck 


File No. 893.00/2544 

Consul Peck to the Secretary of State 

STo. 115 American Consulate, 

Tsingtau^ October 6^ 1916. 

Sir : Referring to my despatch No. 113, of Septenaber 26, 1916, re- 
garding political conditions along the Shantung Railway, I have the 
honor 5) state that ths organization at Kaomi, 66 miles from 



96 


FOREIG]^ RELATIONS 


Tsingtau on the railway, submitted to the Central Goyernment some 
days ago, and is now engaged in disbanding troops. This office has 
been unable to learn the details of the capitulation, but the region is 
quiet. 

A copy of this despatch has been sent to the American Legation at 
Peking and to the American Consulate at Chefoo. 

I have [etc.] 

WiLLYS R. Peck 

Pile No. 893,00/2535 

Minister Beinsoh to the Secretary of State 
[Telegram] 

Americant Legattok, 

PeTcmg^ October 31^ 1916^ 1 a, m. 

General Feng Kuo Chang elected Vice President by National As- 
sembly on third ballot with harmonizing effect. 

Reinsoh 

Pile No. 893.00/2557 ^ 

Minister Reinsch to the Secretary of State 

No. 1305 American Legation, 

Peking^ Decemier 13^ J9J0, 

Sir : I have the honor to report briefly on the general political sit- 
uation: Unfortunately, the contrasts between different parties and 
factions, which have been previously reported upon, have become 
more acute as time goes on. This is particularly true of the hostil- 
ity between the Kuo Tang, which is the chief party represented 
in Parliament, and the military group, loiown as the Pei Yang 
Party, which is headed by his excellency Tuan Chi-jiii. 

The Chin Pu Tang being in the minority* in Parliament has been 
drawn somewhat closer to the Pei Yang groim, although no amalga- 
mation has been affected. The faction of Cantonese, under Liang 
Shih-yi, which is represented by Chu Chi-chien and Yeh Kung-cho, 
now in exile in Tientsin, is also playing a r81e and is leaning toward 
alliance with the military party. 

Under the circumstances, opinions differ widely as to the virtues 
and vices of the existing Parliament. On the one hand, it is charged 
that Parliament has not accomplished any positive work, that it is 
naafcing no headway with the discussion of the Constitution, which 
is its principal duty, and that it has exhausted itself in matters of 
personal politics and in attempted impeachments of General Tuan 
and other high officials to whom it is opposed; also, that in the mat- 
ter of appointments, its sole policy has been to embarrass the Cabi- 
net. On the other hand, the defenders of Parliament urge that it 
has restrained itself, that the constitutional questions before it are 
of great difficulty, and that the Cabinet has not loyally coopoi ated by 
placing before Parliament legislative measures for action. 

The very status of Parliament is a matter of difference of opinion. 
Its extralegal character is urged by its opponents, who claim that 
it exists omy by tolerance of the military party for the purpose of 
working out more feasible constitutional arrangements, and particu- 
larly or reducing the number of members in future parliaments. 



OHIKA 


97 


The adherents of Parliament claim for it a plentitude of legislative 
power. With respect to the Constitution, the main controversy has 
thus far raged about the question as to whether the organization of 
provincial governments is to be included in the Constitution. As the 
military ;party and the Chin Pu Tang elements are at present in 
control ot the majority of the provincial governors^ the Kuo Min 
Tang elenients fear that the election of a new Parliament would be 
managed in a way unfavorable to their party. They therefore pro- 
pose the granting of a large measure of provincial autonomy, even to 
the election of the governors by a popular vote. This is opposed by 
the other parties.. 

With reject to personal questions, the following have been of im- 
portance : Sun Hung-yi, Minister of the Interior, aroused the decided 
disfavor of the Premier and most of his associates in the Cabinet by 
his political manipulations and his inattention to the business of his 
Ministry, which he seemed to regard chiefly as a place in which to 
provide his adherents with positions. The dismissal of Mr. Sun was 
urged upon the President, who, however, was reluctant to act on 
account of Mr. Sun’s numerous following in the Parliament. The 
matter was complicated through opposition which had been organ- 
ized against General Hsu, tire secretary of the Cabinet. General 
Hsu is a young official of considerable ability and readiness to take 
decisive action. He was General Tuan’s chief adviser and assistant. 
In order to settle the Sun affair, the President invited his excel- 
lency Hsu Shih-chang to come to Peking as a mediator. Throimh 
him it was arranged, to satisfy all parties, that Sun and General Hsu 
were to resign. The place of General Hsu has been taken by Gen- 
eral Chang Kuo-kan, who belongs to the moderate military wing. 
Mr. Sun’s position has not yet been filled, as Parliament has refused 
favorable action on the nominees suggested by the Premier. 

As reported in my No. 1296 of the 9th instant, ^ the appointment of 
Mr. Tsao Ju-lin as special envoy to JajDan has also been made a 
means of opposition to the Premier. 

The carrying of party differences into the field of foreign rela- 
tions has had the effect of delaying the settlement of the Lao Hsi 
Kai incident. The faction of Sun Hung-yi systematically instigated 
excitement about the Lao Hsi Kai matter in order to embarrass 
Tuan’s Government. Parliament also refused consent to a loan of 
$5,000,000, negotiated by the Minister of Finance with Japanese 
capitalists. The necessary reference of international agreements to 
Parliament is naturally used by the latter in an attempt to increase 
its power. The danger of this situation is that parliamentary action 
might be determined rather by party, than by national consideration. 

It is feared that at any time a complete deadlock may arise be- 
tween General Tuan’s Cabinet ahd the Parliament, leading to the 
demand on the part of the militarists that Parliament, being an 
extralegal body, should be dissolved, and on the part of the parlia- 
mentarians that force should be met with force. 

Most serious consequences would arise from such an open conflict. 
The Kuo Min Tang leaders in the south, under the ^idance of Mr. 
Tang Shao-yi, are little inclined to compromise. It has been re- 


*Not printed. 




98 


POKEIGN- BEIATIONS 


ported to me from various reliable sources that they are at the 
present time seriously contemplating the secession of the southern 
provinces and the establishment of an independent government south 
of the Yangtze should that be any open conflict in the north. They 
have attempted to gain over General Feng Kuo-chang, the Vice 
President, to their side, apparently with the purpose of raising a 
powerful opposition to the Pei Yang party in the north, powerful 
enough to overbear the military party of Tuan in a contest in which 
the south would then exercise the decisive influence. 


The latest reports which have reached me indicate that General 
Feng has not committed himself to the southern Kuo Min Tang 
leaders, and that at the present time the secession of the southern 
provinces is the policy which appeals most to the Shanghai faction. 

Men of moderate views in Peking believe that Tang Shao-yi 
should be invited to form a Cabinet; in this way, unity would be 
preserved and a test could be made of the possibility of governing 
through a parliamentary party. If the experiment should be suc- 
cessful, Chinese unity would be saved, if not, Mr. Tang Shao-yPs 
leadership would be eliminated in favor of more moderate men and 
the danger of secession would have been avoided. 

There is, however, such an air of intense mutual suspicion and 
fear, that the leaders of the militarjr party are little inclined to give 
over the reins of power to the opposition. 

I have [etc.] 

Paul S. Kisinsch 


DEATH OF PHESIDEITT YUAH SHIH-KAI AHD SUCCESSION OE 
PRESIDENT LI YUAN-HUNG 

PUe No. SQ.S.001Y9/15 

The Chinese Minister to the Secretary of State 

Chiitese Legation, 
'Washington^ June 6^ 1916. 

Sie: It becomes my painful duty to inform you that His Ex- 
cellency Yuan Shih-Kai, President of the Eepublic of China, died 
at Peking on the morning of the 6th instant at 10 o’clock, Vice Presi- 
dent Li Yuan-hung, in accordance with the provisions of the Con- 
stitution of the Eepublic, assuming the duties of the high office 
and acting as President — who will formally lake the oath of office 
as President on the morning of the 7th instant at 10 o’clock* 

In coinmmucating to you this sorrowful intelligence, 

I avail [etc.] 

Vi Ktuin Wellington Eoo 

Pile No. 893.001X9/15 

The Secretary of Staie to the Ohmese Minister 

No. 17 Department op State, 

Washington^ June <S, 1916. 

Sir: I have the honor to acknowledge the receipt of your note 
of Tuesday’s date by which you officiaUy convey the sad int^gence 
of the death on the morning of that day of His Excellency Yuan 



Shih-Kai, President of China, and inform me of the assumption of 
the duties of that high office by Vice President Li Yuan-hung in 
accordance with the provisions of the Constitution of the Kepublio. 

The President, in a telegram to His Excellency, Li Yuan-hung has 
expressed the deep sympathy of the Government and people of the 
United States in this sad bereavement which has befallen the people 
of your country as well as his personal sympathy, and that of Mrs. 
Wilson, for Madame Yuan, and the best wishes for the continued 
prosperity of the Chinese people under President Li’s administration. 

Accept [etc.] 

Robert Lansing 


File No. 893.00m/22 

The President of China to the President 

[Telegram] 

Peking, June 9, 1918. 

On behalf of the Government and people of China, I thank the 
Government and people of the United States and yourself for your 
message of sympatliy on the occasion of the death of President Yuan 
Shih-Kai. Madame Yuan desires me to express to Mrs. Wilson 
and yourself her heartfelt thanks for your kind expression of sym- 
pathy. Guided by the great ideas that have made the United States 
an enduring republic and a prosperous country, I hope to see 
reahzed your wishes for the pro^erity of the Chinese people. 

Li Yuan-hxtng 


File No. 893.001T9/23 

Minister Reinseh to the Secretary of State 

Ifo. 1120 American Legation, 

PeTcmg., Jvm H, 1916. 

Sir ; In conformity with the Department’s telegraphic instructions 
directing the Legation to convey the sympathy of the Government 
of the United States, and of the Secretary of State, to the Chinese 
Government on account of the death of His Excellency Yuan Shih- 
kai, I have the honor to enclose herewith the translation of a note 
of the 9th instant which I directed to his excellency Tsao Ju-lin on 
this subject. 

There is also enclosed herewith the Foreign Office’s reply of June 
10, requesting the Legation to inform the Department of the sincere 
gratitude offered by it. 

I have [etc.] 

Paul S. Eeinsoh 


[Inclosure 1 — ^Translation] 

Minister Reinseh to the Acting Minister for Foreign Affairs 

No. 460 Amebican Legation, 

Pehingj June 9, 1916. 

Excellency: I have the honor to acknowledge the receipt of your excellency's 
note of June 6, 1916, informing me of the sad death of His Excellency Yuan 
Shih-kai, President of the Bepnblic of China^ at 10 a. m., on June 6. 



100 


I’OruEIGlfl- KELAnOHS 


Upon receipt of yonr excellency’s note I sent a telegram to my Government, 
and have now received an instruction directing me to convey to 5 ’'our excel- 
lency’s Government the deep regret and sincere sympathy of the Govern- 
ment of the United States and of the Secretary of State. 

I avail [etc.] 

Paul S. Rbinsch 


[Inclosure 2 — ^Translation] 

The Acting Minister for Foreign Affairs to Minister Eeinsch 

No. 481 Foeeign Office, 

Feking, June 10, 1916. 

Sm: I have the honor to acknowledge the receipt of your note No. 480 of 
June 9, 1910, stating that you had sent a telegram to your Government an- 
nouncing the death of His Excellency President Yuan Shih-kai, and that you 
had received a reply directing you to convey to this Government the deep 
regret and sincere sympathy of the Government of the United States and of 
the Secretary of State. You were also good enough to call at the Ministry to 
offer condolences on behalf of your Government, for all of which we are deeply 
grateful. 

I have the honor now to send this reply to express the sincere gratitude of 
my Government, and to request that you will be so good as to inform your Gov- 
ernment and the Secretary of State. 

With compliments, 

[Seal of the Ministry of Foreign Affairs] 


File No. S93.001Y0/24 

Minister Reinsoh to the Secretary of State 

No. 1134 Amekioan Legation, 

Peking^ July 5, 1016. 

Sir: I liave the honor to inform you that on the 1st instant, duilng 
my temporary absence from Peking, President Li Yuan-hung’s pri- 
vate secretary, Mr. Kuo, called at the Legation and stated to the Sec- 
retary of Legation that President Li, having been advised by tele- 
graph by the Chinese Minister at Washington that President Wilson 
had personally attended a memorial service for the late President 
Yuan Shih-kai, had instructed him to make known to the Legation 
the President’s appreciation of that action; and he added that 
President Li interpreted it not merely as a formal act of courts^ to 
the memory of President Yuan, but as an indication of President 
Wilson’s personal interest in China; and he requested that this mes- 
sage be conveyed to the proper quarter. In undertaking to communi- 
cate this message in behalf of President Li, Mr. MacMurray expressed 
his a^reciation of the interpretation placed on the action of Presi- 
dent Wilson, who is, in fact, understood to feel a particularly keen 
personal interest in the welfare of China. 

I have [etc.] 

Paul S. Rkinsch 

File No. 893.001L7e 

The Chinese Minister to the Secretary of State 

No. 26 Chinese Legation, 

Washington.^ Octoh&r IS., 1916, 

Sir : I have the honor to enclose herewith an autograph letter ad- 
dressed to the President of the United States of America by the 



CHIIjrA 


101 


President of tlie Eepublic of China, accompanied by an English 
translation thereof. 


I shall be greatly obliged if you will be so kind as to transmit the 
letter to its high destination. 


Accept [etc.] 


Vi Kytjin' Wellington Koo 


tinclosnre — ^Translation] 

The President of the Republic of China to The President of the United States 

of America 
Greeting : 

Upon tbe death of our late President Yuan Shih-kai, I, in accordance with 
our Constitution which provides for the succession by the Vice President to the 
Presidency, assumed on the seventh day of the sixth month last (June 7, 
1916) the duties of the office as President. 

The friendly relations which have always existed between China and the 
United States I shall consider it my highest endeavor to maintain, to the end 
that the existing bonds of friendship between the two countries may be drawn 
closer. 

I avail [etc.] 

Li Yuan-hung 

Chen Chin-Tao, 

Acting Mmister of Foreign Affairs 

Written the fourth day of the ninth month in the Fifth Year of the Republic 
of China. 

File No. S9S.001L76 

The Acting Secretary of State to the Chinesq Minister 

Department of State, 

Washington^ October 19^ 1916. 

Sir: I have the honor to acknowledge the receipt of your note- 
of the 13th instant, enclosing an autograph letter addressed to the 
President of the United States by which ffis Excellency Li Yuan- 
hung announces his assumption of the duties of the office of Presi- 
dent of the Republic of China, in accordance with the Constitution 
of the Republic. 

His Excellency’s letter will be laid before the Pi’esident whose 
reply will be delivered through the American Minister at Peking. 

Accept [etc.] 

Frank: L. Polk 


File No. 803.001L76 

The Secretary of State to Minister Reinsch 

No, 517 American Legation, 

Peldng^ October ^5, 1916. 

Sm: I enclose, with office copy, a letter addressed by the President 
of the United States to His Excellency Li Yuan-hung acknowledg- 
ing the receipt of his letter of September 4 last, in which he an- 
nounced his assumption of the Presidency of the Republic of China. 

106413"— F E 1916—12 



102 


rOEEIGir BEIATIOirS 


You will forward the office copy to the Foreign Office and deliver 
the original in the manner most agreeable to His Excellency. 

I am [etc.] 


For the Secretary of State; 

Frank L. Polk 


[Inclosurel 

The President to the President of the Republic of China 


The White Hoitsb, 
Washington, October 19, 1916, 

Oreat and Good Fisiend: 

I Iiave received the letter of the 4th of September last, in which Your Excel- 
lency announced your assumption, on the 7th day of June last, of the Presi- 
dency of the Republic of China and your entrance upon the duties of the office. 

I cordially reciprocate ihe sentiments you express for the continuance of the 
friendly relations which have heretofore existed between the United States and 
China, and I assure Your Excellency of my best wishes for your personal 
welfare and for the prosperity of the Republic over which you have been called 
to preside. 

Your good friend, 

Woodrow Wilson 


File No. 893.001L76/1 

Minister Reinsoh to the Secretary of State 

[Extract] 

« 

No. 1294 American Legation, 

Peking^ December 8, 1916. 

Sir: I have the honor to report that, having received your in- 
struction No. 517 of October 25, enclosing a letter from the President 
of the United States to the President of China, I asked for a special 
appointment and presented the President’s letter to His Excellency 
Li Yuan-hung today. 

President Li expressed his high gratification at receiving the 
President’s communication, the sentiments of which he fully re- 
ciprocated. * * * 

President Li also expressed his highest appreciation of the per- 
sonal attention which President Wilson has given to Chinese atfairs 
during the last four years, and especially the fact that whenever 
agreements concerning China had been made, the American Govern- 
mrait had taken steps to safeguard the rights of China and the 
principle of equal opportunity. In conclusion, he admitted that he 
realized that America could help_ China best in a measure as China 
helped herself through introducing efficiency into her administra- 
tion. 

I have [etc.] 

Paul S. Reinsoh 



CHnrA 


103 


HTTAI RIVBB COBrSEBVABCY PBOJECT. PimTHEB EXTENSION OF 
THE BED CBOSS OPTIOIT. CONTBACTS BETWEEH CHINA AND AN 
AMEBICAN EIBM: FOB IMPBOVEMENT OF THE G-BAND CANAL 
IN KIANGSH AND SHANTUNG. INTEBVENTION OF JAPAN AND 
BESEBTATION OF BIGHTS BY TEE UNITED STATES* 

File No. 893.811/204 

Mmister Beinsch to the Secretary of State 

[Telegram] 

American Legation, 

Peking, January 1916. 

Your December 28. The Chinese Government would be willing 
to extend option but the expectation of people of Provinces con- 
cerned is that work ought to be begun. If bankers are willing to 
finance restoration of Grand Canal from the Yangtze to Techow at 
cost not to exceed $3,000,000 gold, on security of canal tolls esti- 
mated at $500,000 gold yearly with Government guarantee, the 
Government will renew option. Canal would have exceedingly 
large carrying trade, work would be independently useful, and give 
engineers experience of the region for eventual use in larger 
enterprises. 

Beinsch 


File No. 8^3.511/205 

The Secretary of State to Minister Beinsch 

[Telegram] 


Department of State, 
'Washington, January 10, 1916, 
The American Bed Cross requests you be informed following : 

Believe American International Corporation would be interested Grand Canal 
project on lines suggested. If Obinese Government willing now extend option 
Huai River conservancy scbeme on understanding that American International 
Corporation be given preference naming contractors and undertaking financing 
during duration siicb option, American International Corporation now pre- 
pared instruct Gregory [and] Carey investigate Canal project If tbeir report 
satisfactory and if on receipt their report corporation can arrange with 
Chinese Government satisfactory terms for purchase bonds, corporation now 
believes could undertake business. If foregoing basis acceptable, corporation 
hopes Minister wiU now place Gregory, Carey in touch with the proper Chinese 
officials. 

Lansing 


File No. 893.811/210 

Mmister Beimeh to the Secretary of Stale 

No. 923 American Legation, 

Peking, Fel)ruary 1916, 

Sir : I have the honor to report that in pursuance of the plan out- 
lined in my telegram of January 4, and sanctioned by your tele- 
graphic instructions of January 10, 1 have arranged with the Chinese 


•Continued from For. Eel. 1915» pp, 212-210. 



104 


I'OEBIGN RELATIONS 


GoTernment to grant an extension of the Huai River Preliminarv 
Arrangement for four months from January 31, for the purpose of 
giving Messrs. Carey and Gregory the time necessary for investigat- 
ing the Canal project as a separate undertaking. It has been ar- 
ranged that in case the American representatives find the Canal 
project feasible and undertake the execution thereof, the American 
International Corporation is then to be gi'anted the extended option 
for financing and carrying out the larger irrigation project in the 
Huai River region. 

I have the honor to enclose the following correspondence relating 
to this matter: 

To the Minister of Agriculture and Commerce, January 14, 191C. 

From the Minister of Agriculture and Commerce, January 25, 
1916. 

From the Minister of Agriculture and Commerce, January 31, 
1916. 

Messrs. Carey and Gregory are planning to proceed, on February 
7, on a tour to inspect the canal between the Yellow and Yangtze 
Rivers. 

I have [etc.] 

Paul S. Reinscii 


[Inclosiire 1] 

Minister Reinsch to the Minister of Agriculture and Oommcrce 

Ameeican Legation, 

Poking f tJanmiry IJf, 1916, 

Excellency: I have the honor to inform you that, under the terms of the 
Preliminary Agreement of January 30, 3914, entered into between the Chinese 
Government and the American Ued Cross, with respect to the drainage of 
the Huai Biver and Grand Canal areas, the following proposal is submitted : 

It is suggested that the restoration of the Grand Canal, from the Yangtze 
Biver to Tientsin, be first undertaken, and that the Chinese Government allow 
the American International Corporation, which has been nominated by the 
American Bed Cross, a period of four months to investigate the feasibility and 
cost of restoration of the Grand Canal. If the representatives of tho corpora- 
tion approve of the plan, the corporation will raise the necessary funds under 
a Chinese Government loan upon such security and at such a rate as is to be 
agreed upon between the Government and the corporation at that time. In 
case this work is to l>e undertaken, the American International Corporation, 
as nominee of tho American Bed Cross, would ho given the option of carrying 
out the larger plan of draining the Iluai Biver region, when thu restoration of 
the Grand Canal shall have been completed. It is also suggested that, during 
the progress of the above work, the Chinese Government might provide 
funds from specified revenues sufficient to pay the necessary interest charges 
in order to apply the amounts borrowed, without deduction, to the accom- 
plishment of the work. 

I have the honor, in this connection, to introduce to your excellency Mr. 
W. P. Carey and Mr. E. T. Gregory, representatives of the Sioms-Carcy Com- 
pany, who have been designated by the American International Corporation 
as its representalives in this matter. I beg also to requost that your excel- 
lency will be so good as to introduce these gentlemen to his excelhmcy Mr. 
Chin Pang-ping, Vice Minister of Agriculture and Commerce, and Chief of 
the Bureau of Conservancy. 

I avail [etc.] 


Paul S. BjErNsoH 



CHnsrA 


105 


[Indosure 2 — ^Translationl 

The Mifitster of Agriculture and Commerce to Minister Beinsch 


Peking, January 85, 1916. 

Sie:^ I haye the honor to aclmowledge the receipt of your communication, 
in which you state that under the terms of the Preliminary Agreement of 
January 30, 1914, entered into between the Chinese Government and the Ameri- 
can Red Cross with respect to the drainage of the Huai Elver and Grand 
Canal areas, there are two propositions which may be made. You introduce 
Messrs. W. F. Carey and E. T. Gregory, representatives of the Siems-Oarey 
Company in China. 

^ I have referred the matter to Mr. Chin, the Director General of the Na- 
tional Conservancy^ Bureau, for consideration, and now am in receipt of his 
reply, a copy of which I now enclose for your consideration. 

With compliments. 


Chou Tzxj-Chi 


£ SnbindosTtre — Translationi 

The Director General of the National Conservancy Bureau to the Minister of 
Agriculture and Commerce 

jANtr-AEY 24, 1916. 

Excellency: I have the honor to acknowledge the receipt of the communi- 
cation from the American Minister which you handed to me, setting forth two 
proposals, under the terms of the Preliminary Agreement of January 30, 
1914, entered into between the Chinese Government and the American Bed 
Cross, with respect to the drainage of the Huai River and Grand Canal 
areas, and also introducing Messrs. W. F. Carey and E. T. Gregory, of the 
Siems-Carey Company, representatives of the American International Corpo- 
ration. 

A communication was also received from the American Minister in the same 
sense as the above. 

It is noted that the first proposal in the American Minister’s communica- 
tion is to restore the Grand Canal from the Yangtze River to Tientsin; also 
that in accordance with the conservancy area fixed upon in the Preliminary 
Agreement, that part relating to the Grand Canal is the Inner Grand Canal 
from Kwachow to Tsingkiangpu and from the point where the I and Ssu 
Rivers enter the Grand Canal up to Yao Wan. The preliminary agreement 
is still in force and it is not expedient to discuss changing it. This sincere 
and friendly effort on the part of the Americans is nevertheless much ap- 
preciated. 

It happened that Pan Pu, Director General of the project for restoring 
the Southern Grand Canal and the Hu River in Shantung Province, had come 
to Peking to raise the funds required for this work. Messrs. Carey apd 
Gregory having been invited to the Bureau to enter into negotiations, it was 
proposed that the administration of Shantung Province first enter into a 
foreign loan for restoring the Southern Grand Canal, the amortization, payment 
of interest, and security of which should all be arranged by Shantung Province. 
Furthermore, such matters as the employment of technical experts and the 
construction work to be decided by negotiation between the Province of Shan- 
tung and the parties making the loan. Before the loan agreement shall have 
been fixed notification thereof should be sent to the Central Government for 
its approval and recognition. The important points of these negotiations were 
explained to both parties. Messrs. Carey and Gregory stated that they would 
proceed at once to inspect the Southern Grand Canal. Director General Pan 
returned to Shantung day before yesterday to make arxangementa This 
Bureau will also send Fang Wei-ytu, an engineer, and Yang Pao-ling, a techni- 
cal expert, to make an additional Inspection in order to meet its obligation to 
afford assistance and furnish information. 

Your excellency is hereby informed of the status of the negotiations with 
the Americans Carey and Gregory, and the hope is expressed that you will 
take note thereof and inform the American Minister. 

With compliments. 

Chin Pang-Ping 



106 


rOEEIGIT EEIATI0N3 


[Indosure 3 — ^Translation] 

Tlw Chinese HHnister of Agriculture to Minister Reinsch 


Peking, January 31, 1916, 

Sib: On the 30th of January, 1916, I received a letter from Chin Pang-ping, 
Director General of the National Conservancy Bureau as follows : 

Yon have handed to me the letter of the American Minister relating to the improve- 
ment of the Grand Canal from the Yangtze River to Tientsin. The Chinese Government 
has agreed to grant four months’ time to the American International Corporation, recom- 
mended by the American Red Cross Society, for an investigation as to the way of carry- 
ing out the work. If this undertaking is really commenced then the American Inter- 
national Corporation shall be given the preference, after the improvement of the 
Grand Canal is completed, in the matter ol the conservation work m the Huai River 
basin. I, the Birector General of the National Conservancy Bureau, have already 
reported to you the results of my interview (with the representatives of the Inter- 
national Corporation) for transmission to the American Minister. Now the period for 
the consideration of the Huai River loan was extended for one year in January, 1015, 
so that the time expires on January 31, 1916 In order to show the friendly feeling 
which exists between China and America it is now proposed to give a further period 
of four months to the American International Corporation designated by the American 
Red Cross Society, in which to inspect the Grand Canal in the provinces of Shantung 
and Kiangsu. Within this period an estimate of the labor required for the above- 
mentioned Grand Canal must be presented and the terms of a loan must bo settled. If 
the Bureau accepts the proposition made within this limit of time, preference will then 
be given to the Corporation in the large conservation work of the Huai River basin, 
after the completion of the above-mentioned work on the Grand Canal. Thus will be 
manifested and consolidnted the friendship between the two nations. If within the 
above-mentioned four months matters cannot be settled, this Bureau will consider it 
decisive, and no extension of the time will be granted. You are asked to notify the 
American Minister and give me a reply. 


Having received this communication I now inform your excellency and ask 
for a reply. 

With compliments. 

OnoTj Tzu-Ohi 


File No. 893.811/213 

Minister Beinsch to the Secretary of State 

[Telegrams] 

American Legation, 

Peking^ Apnl 17^ 1916, 

Carey and Gregory have concluded preliminary contract with 
Shantung Government for the improvement of the Grand Canal in 
that province as part of Huai Eiver conservancy. Construction work 
to be carried out by Carey. 

•The Chinese Government, under the Treaty of 1898, felt obliged 
to offer a participation in loan to Germans. 

^ Eeinsoh 


File No. 893.811/214 

American Legation, 

Peking,^ April 20^ 1916^ 11 p, m. 

The terms of Shantung Canal agreement as reported by Gregory 
to the International Corporation are the most favorable ever obtained 
by any foreign firm for a loan in China. Prompt ratification by the 
bankers highly desirable. There is nothing in the present situation 
that militates against security or advisability of a loan of this sort 
connected with recognized American undertaking. 


Eeinsoh 



CHINA 


107 


nie No. 893.811/215 

AiiEracAN Legation, 
Peking^ April 1916, 6 p. m. 

My telegram of April 20, _ 11 p. m. The loan is a provincial obliga- 
tion guaranteed by the Chinese Government, a form which has ad- 
vantage of gaining direct provincial support and security in addition 
to that of Central Government. 

Eeinsch 


rae No. 893.811/216 

Ajieeioan Legation, 
Peking, April 27, 1918, 9 p. m. 

My telegram of April 21, 6 p. m. Grand Canal loan negotiated 
with great caution by Gregory, Carey, who obtained terms I consider 
almost too severe for China. 

The Chinese Government observed treaty with Germany by giving 
notice. 

No treaty obligation has accrued in favor of Japan; at any rate 
obligation purely one of Chinese Government in connection with 
which no liability could attach to bankers whose obligations so profit- 
able and universally beneficial enterprise. 

It is difficult [sic] to see the Government is also ready to conclude 
agreement for Kiangsu portion which could be undertaken first if de- 
sirable. It is of capital importance that a contract in connection with 
Huai conservancy be concluded, otherwise another glaring mstance 
added to past deplorable failures of American finance in China. 

Eeinsch 


FUe No. 893.811/221 

Minister Beimeh to the Secretary of State 

[Srtract] 

No. 1056 Ambeioan Legation, 

Peking, April 28, 1916. 

Sm : In continuation of my despatch No. 923 of February 4 last, 
I have the honor to report on the progress of the negotiations with 
respect to the inmrovement of the Grand Canal, in connection with 
the Huai Eiver Conservancy. 

When the negotiations were taken up by Messrs. Carey and Greg- 
oryj the Minister of Agriculture and Commerce emphasized the 
desire to have the improvement include the entire course of the 
Canal between the Yangtze and Yellow Eivers. This is desirable 
from the point of view of income and utility ; if the use of the Canal 
could be assured at all times of the year, a large and profitable 
through traffic could be counted upon between the two rivers and 
between the two provinces (Shantimg and Ki^gsu) through which 
the Canal passes. In consultation with the Mimster of Agriculture 
and Commerce and with the Director of the Conservancy Bureau, 
the American negotiators decided to take up first the Shantung sec- 
tion. I had expressed to them the opinion that it was preferable to 
make the Kia ngsu contract first; they were, however, determined 
by the fact that the situation with respect to Shantung had some 



108 


lOKElGN BEIATIONS 


very favorable elements. The gentleman in charge of conservancy 
work there, Mr. Pan Fu, is an official of unusual ability and energy. 
He has made a complete survey of the worlcs needed which he has 
put forth in a large size printed volume. Both Mr. Pan and the 
Governor of Shantung were extremely anxious to have this work 
undertaken as it would very materially enrich the western part of 
the province. The Government of Shantxmg was therefore in every 
possible way very ready to facilitate the making of the contract and 
the execution of the work. 

Attention being called to the provisions of the treaty with Ger- 
many of 1898, the Chinese officials stated to the American negotia- 
tors that there was nothing to apprehend on this score : the Gorman 
Consul at Tsinanfu had been given notice, but it was unlikely that 
the Germans were willing to furnish this amount at the present 
time; no other rights in the matter had accrued as yet, and the 
Chinese officials expressed a complete confidence in being able to 
handle the situation. As it was only the obligations of the Chinese 
Government that were involved, the American negotiators jiroceoded 
on the basis of these assurances. 

The negotiations with the Shantung officials were carried on at 
Tsinanfu and Peldng for the space of four weeks, and every detail 
of the contract was carefully considered. The result was the. making 
of a preliminary contract which provides both for the furnishing 
of the loan and for the execution of the work on contract. Con- 
sidering all its terms, the contract may be held to be the most favor- 
able ever obtained by foreigners in China; this is especially true 
because of the first actual use of a contract for construction work on 
a^n per cent (10%) commission basis. The Chinese hitherto have 
been unwilling to make use of this established method of carrying 
out large wodrs of construction, partly because they believe "they 
could themselves sublet the contracts and supervise the work as 
wdll as foreigners, and partly because the introduction of a foreign 
supervising firm greatly reduces the opportunity for incidental 
gains. That the officials in this case decided to use a method hitherto 
so unacceptable is a sign of decided progress in official ideas. The 
first introduction of tms idea occurs in the preliminary agreement 
for the Huai Eiver conservancy of January 30, 1914:.^ 

Negotiations are at present proceeding and are likely soon to be 
concluded for a contract covering the work on the southern portion 
of the Canal, lying within the Province of Kiangsu; when this has 
been secured it will practically lie within the option of the bankei’S 
to attack the Kiangsu portion first and to delay action on the Shan- 
tung section until all possibility of international difficulty has been 
removed by the Chinese. The Chinese were desirous of having a defi- 
nite offer from American financiers on this matter because then 
they would be in a position to demand of any eventual claimant im- 
mediate furnishing of the money, which they believed would result 
in clearing the field of every possible opposition. 

I have [etc.] 

Pato S. Rbinhoh 


»Por. Eel. 1014, p. 102. 




cmmA 


109 


FileNo,89S.811/217 

Minister Reinsoh to the Secretary of State 

[Telegram] 

Amertcan Legatton, 
Peking^ May 15^ 1916. 

Contract for improvement Grand Canal in Kjangra providing for 
loan of $3,000,000 secured by canal tolls has been simed subject to 
the approval of directors American International Corporation. 
Highly desirable that ratification should not be delayed, 

Eeinsch. 


FUe No. 89S.811/228 

Minister Reinsch to the Secretary of State 

No. 1072 American* Legation, 

Peking^ May 15^ 1916. 

Sir : In continuation of my despatch No. 1056 of April 28, 1916, 
I have the honor to report on the progress of the negotiations v^ith 
respect to the improvement of the Grand Canal, in connection with 
the Huai River conservancy. 

In the absence of Mr.' Gregory, Dr. T. J. Gatrell has been author- 
ized to negotiate on his behalf as the representative of the American 
International Corporation. He was given the assistance of the Lega- 
tion and particularly of the Chinese Secretary, Dr. Tenney. The 
problem which presented itself was to so frame the contract for the 
improvement of the Grand Canal in the Province of Kiangsu as to 
carry out the understanding that it was the first step in the execu- 
tion of the Huai River conservancy plan, while at the same time 
giving opportunity to the American interests to ascertain more 
thoroughly the exact nature of the drainage work to be done in the 
Huai River basin, the cost thereof, and the security, before abso- 
lutely committing themselves to a definitive obligation with respect 
to the larger work. 

H. E. Chin Pang-ping, Minister of Agriculture and Commerce, in 
his capacity as Director General of the National Conservancy 
Bureau, insisted that it would not be feasible to separate the work 
in the Huai River basin from that on the Grand Canal, as otherwise 
the Grand Canal project would become one entirely within the pur- 
view of the provincial authorities of Ejiangsu and also the Central 
Government would be severely criticized for postponing or abandon- 
ing the larger work. 

In order to meet the situation and in order clearly to indicate that 
the canal improvement is considered entirely as the first step in the 
Huai River plan, of which it is an integral part, the following ar- 
rangements were made: It was agreed that expert engineers would 
immediately be appointed to inve^i^te the conditions relating to 
all the other works included in the Huai River conservancy and to 
draw up detailed plans for the carrying out of the same^ which are 
to serve as a basis for raising a further loan or loans m order to 
complete said works. In an exchange of notes between the American 
Minister and the Minister of Agriculture and Commerce, acting in 



110 


POKETOir EBLATIOira 


his capacity as Director General of the ISTational Conservancy Bu- 
reau, it was agi’eed that tlie preliminary agreement concluded on 
January 30, 1914:, would remain in force throughout the period of 
execution of the Grand Canal improvement, and that within tliis 
period a final agreement should be drawn up for carrying out the 
necessary work on the Huai Eiver conservancy on the basis of the 
further investigations and reports of the engineers. 

Copies of the contract relating to the Grand Canal in the Province 
of Kiangsu, as well as the exchange of notes “ above referi*ed to are 
herewith enclosed. There is also enclosed a copy of the agreement 
previously concluded with respect to the portion of the Grand Canal 
in Shantung Province, reported on in my de.spa<ch No. 105G of April 
28 ; as well as the copy of a general edict on the conservancy issued 
February 24, 1916. 

With respect to the contract relating to the Shantung portion of 
the Grand Canal, I have the honor to report that H. E. the German 
Minis ter, as indicated in my cablegram of April 21, has informed 
his Government that a contract has been concluded with American 
interests for the execution of the Canal improvement in the Province 
of Shantung, and that, under the treaty of 1898, participation in the 
loarr is offered to German capitalists. On account of tire necessary 
slowness in commrmication, no reply has yet been received from 
the German Goveminent. The representatives of the American In- 
ternational Corporation stated to me that they had no objection to 
part of the money being furnished from German sources. 

The contract relating to the Grand Canal in Kiangsu Province 
was signed by Dr. Gatrell subject to ratification by the directors 
of the American International Corporation. It is of great impor- 
tance that this ratification should be promptly forthcoming. The 
contract is extremely favorable both in the matter of security and 
particularly in granting a ten per cent commission to the constniction 
company. The work on the Huai Eiver improvement is so promi- 
nently associated with American standing in China, is so eminently 
useful and beneficial, that it sliould be undertaken without delay. 
Under the present arrangement the larger reclamation work can now 
be thoroughly tested and the best mode of execution can be con- 
sidered from every point of view before any further commitment 
is necessary. 

I have [etc.] 

PATJii S. Eeinsoh 


[Inclosure 1] 

AGBEEMENT FOE HUAI BIVEB CONffEKVANCT GRAND CANAL IMPROVEMENT LOAN 

Whereas, on January 30th, 1914, a Preliminary Agreement was signed by 
the Government of the Kepublic of China and the American Bed Cross for 
the carrying out of certain works included in the Huai Biver conservancy,® 
and which works would be of great humanitarian benefit, and 
Whereas, it has been deemed advisable that, in order to assist in the carry- 
ing out of this work, the improvement of that portion of the Grand Canal 
which is included in the Huai Biver conservancy shall be undertaken as a 
first step: and 


*Not printed 


For Rei. 1914, p, 102, 




CHUfTA 


111 


Whereas, the American International Corporation, hereinafter calleO “the 
Corporation ”, is willing to provide funds to carry out the said improvement 
of the Grand Canal, the Government of the Republic of China, hereinafter 
called “the Government”, and the American Red Cross Society agree that 
this shall be done on the understanding that, during the progress of the said 
work, the Corporation will recommend to the Government for anpointment 
expert engineers to investigate and report upon the most recent '’conditions 
relating to all the other works included in the Hnai River conservancy scheme 
and to draw up detailed plans for the carrying out of the same, to serve as a 
basis for its arrangements for raising a further loan or loans in order to com- 
plex the whole of the said Huai River conservancy works; 

Now therefore, the Government and the Corporation have agreed as follows : 

Article I. The Government hereby authorized the Corporation, and the Cor- 
poration agrees, to issue on behalf of the Government a gold loan, under 
terms and conditions hereinafter set forth, for an amount not exceeding Three 
Million Dollars U. S. Currency (G?3,000,000.) The loan shall be called the 
Huai River Conservancy Grand Canal Improvement Seven Per Cent Gold 
Loan of 1916. 

Article II. The rate of interest for the loan shall be seven per cent (7%) 
per annum on the aggregate amount of the loan, and shall be paid punctually 
by the Government to the bondholders upon presentation of the proper coupons 
half-yearly through the bank or banks designated by the Corporation, in ac-* 
cordance with the schedule attached to this agreement.” The said interest 
shall be calculated from the date on which the loan is issued and shall be 
paid out of revenues from the Canal fifteen (15) days before due date to the 
bank or banks designated by the Corporation. Should the revenues be insuffi- 
cient to meet the amounts required for interest, the Government agrees to 
make up the deficiency from other sources. 

The term of this loan shall be twenty (20) years. The loan shall be re- 
deemed in fifteen (15) equal annual installments, dating from the fifth (5th:) 
year of issue, by drawings which shall be held in New York at the office of 
the Corporation in conformity with the amortisation table hereto attached.® The 
numbers of drawn bonds shall be published in four (4) daily newspapers at 
the expense of the Corporation. Drawn bonds shall be paid in gold at their 
face value. Bonds presented for payment must be surrendered together with 
their proper coupons. Interest on drawn bonds ceases on the day of drawing. 
If after five (5) years from the date of the issue of the loan the Government 
shall desire to redeem the whole or any portion of the loan, it may do so by 
paying a premium of one and one-half (1^%) per cent on the par value of 
the bonds, but in each and every case of such extra redemption the Government 
shall give six (6) months previous notice in writing to the Corporation, and 
such extra redemption shall be effected by additional drawings of bonds to 
take place on the date of an ordinary drawing as provided for in the prospectus 
of the loan. The redeemed bonds and interest coupons will be received and 
cancelled by the Corporation when they shall be presented for payment 

The Corporation is hereby authorized to issue to subscribers to the loan 
gold bonds to the total amount of the loan or for such portion as shall 
be detei’mined by them. The form and language of the bonds shall be set- 
tled by the Corporation. The bonds shall be printed and engraved by the 
Corporation at the expense of the Government, and before being issued 
shall bear the facsimile signature and seal of the Minister of Finance 
of the Government of the Republic of China. The Chinese Minister in 
Washington, shall, previous to the issue of the bonds, authenticate them 
with a facsimile of his signature and seal so as to prove that the issue of 
bonds has been duly authorized and is a binding obligation of the Chinese 
Government. 

Article HI. This loan shall constitute a direct liability and obligation 
of the Government of the Republic of China, which hereby pledges Its 
good faith and credit for the punctual payment of the principal and interest 
of the loan and for the performance of all undertakings on its part herein 
assumed. The loan shall be secured as follows: 

All tolls and taxes, exclusive of Uki/n, now levied or to be levied on 
the Grand Canal in Baangsu Province and which the said Government 


*Not printed. 



FOBEIOT BEliATTOKS 


112 

guarantees to be Six Hundred Thousand ($600,000.) Mexican Dollars. In 
case the said tolls and taxes should not equal this amount, the Government 
will make up, from other sources, whatever deficiency there may be so that 
the amount available shall at all times equal Six Hundred Thousand ($600,- 
000.) Mexican Dollars. 

Article IV. The loan shall be issued in one or more series ot bonds as 
soon as possible after the signing of this agreement The issue price of 
the bonds to the Government shall be ninety percent (90%) of their face 
value. All expenses, such as banker’s commission, flotation charges, stamp 
charges, etc., shall be borne by the Corporation. 

As soon as possible after the signing of this agreement there shall be 
transfeiTed to the bank or banks in China designated by the Corporation 
and put to the credit of the Huai Biver Conservancy Grand Canal Admin- 
istration Account, six (6) months’ estimated expenditure in advance. This 
amount of estimated expenditure for six (6) months, which shall be deter- 
mined by the Director-General in consultation with the Bngiueer-in-Chief, 
shall be maintained by subsequent monthly transfers so that, as far as 
possible, there will be always six (6) months’ estimated expenditure in 
China on deposit. Interest at the rate of four (4%) percent per annum 
shall be allov'ed by the banks on this deposit. The balance of tlie proceeds 
of the loan shall be held on deposit in America for the service of the 
•loan. Interest at the rate of two (2%) percent per annum shall be allowed 
the Government as long as any portion of this balance shall remain on 
deposit. 

Requisitions for loan funds for the carrying out of the engineering work 
shall be drawn up by the Engineer-in-Chief and forwarded to the Director- 
General for his approval, who, before endorsing same for presentation to 
the banks for payment, shall consult with the Contracting Engineer as to 
the feasibility of the work proposed and the reasonableness thereof, and the 
Contracting Engineer shall furnish a certificate to the Director-General to 
the effect that the work proposed is feasible and the cost reasonable. 

When the work is ready to begin, a Head Works Bureau, to be called 
the “Huai River Conservancy Grand Canal Improvement Works Bureau,” 
shall he established at Tsing-Kiang-Pu. This ofidce shall be under tlie 
direction of a Chinese Director-General appointed by the Government, with 
whom will be associated an American Chief Engineer and an American 
Chief Accountant. These employees shall be proposed and certified for 
their posts by the Corporation, and shall be appointed by the Director- 
General. If the American Chief Engineer or the American Chief Accountant 
should prove untrustworthy, the Director-General shall duly inform the Cor- 
poration and dispense with their services, and the Corporation shall nomi- 
nate their successors; and in the event of the Corporation desiring to remove 
them for good cause, it shall do so in consultation with the Director-General. 
It is understood that the duties performed by these employees are intended 
to promote the material interest of the Chinese Govement and the bond- 
holders respectively, and it is therefore agreed that all eases of difrerenee 
arising therefrom shall be referred for amicable adjustment to the Director- 
General and the representative of the Corporation. 

Any consulting engineer representing the Director-General who shall be under 
orders to inspect the progress of the work shall be afforded reasonable facili- 
ties for such inspection. 

Statements of the receipts and disbursements shall be made monthly in 
Chinese and English in the Department of the Chief Accountant, who shall 
organize and supervise the same and who shall report thereon for the informa- 
tion of the Director-General and the Corporation. 

The salaries of the Chief Engineer and Chief Accountant, and the salaries 
and expenses of the engineers to be engaged to make the investigations con- 
cerning all the other Huai River conservancy works referred to in the pre- 
amble to this agreement, shall be arranged between the Director-General and 
the Corporation, and shall be paid out of loan funds. 

Article V. As soon as required after the signing of this agreement the Head 
Works Bureau shall establish a Canal Department Office, which office shall 
have charge of the collection of all the tolls and taxes defined in Article III 
of this agreement, and the revenue so collected shall be paid into the fiscal 
agency of the Corporation to be applied to the interest and amortisation of the 
loan xmtil such interest and amortisation have been paid in fnlL 



OBOTA 


113 


The organization and management of this Canal Department Office shall be 
under the control of the Director-General, who will be assisted by the American 
Chief Accountant 

Article VI. The work shall be performed on a percentage basis by contrac- 
tors designated by the Corporation, who shall be a concern of known reputa- 
tion, of high standing, and who have had large experience in the successful 
carrying out of great construction enterprises, and in whom the Corporation 
have the utmost confidence that the work intrusted to their care shall be 
carried out rapidly, efficiently, and economically. 

This concern shall open a Head Office in Peking, China, wherein the prin- 
cipal accounts and records of this work shall be kept. These accounts and 
records shall be open at aU times for inspection by the Director-General, the 
Corporation, or their appointees, and any information which has a direct bear- 
ing in any way upon the work shall be at all times placed at their service. In 
addition, if required by the Government, a complete set of accounts in connec- 
tion with the carrying out of this enterprise shall be kept in Chinese and 
statements issued monthly to the Director-General and the Corporation. 

The contractors shall give their personal attention to this enterprise and it 
is hereby agreed that they shall receive as remxmeration ten per cent ( 10 %) 
of the monies expended upon the work. No charge, however, shall be made by 
the contractors to the Government for their head office herein mentioned or 
the staffi employed therein, nor shall the contractors charge for their personal 
supervision or personal expenses. 

Article VII. In the purchase of materials preference shall be given to Chinese 
materials when price and quality are equal, otherwise American materials and 
machines will be used when the price does not exceed the price of the same 
quality in other foreign markets. 

The Chief Engineer shall be instructed at once to make a plan of the work 
to be done, which plan is to be approved by the Director-General in consulta- 
tion with the Contracting Engineer, who shall submit a detailed scheme of 
procedure. 

Article VIII. The Government will at all times provide sufficient protection 
for the work and all properties of the corporation as well as Chinese and for- 
eigners employed thereon, and the Chief Engineer may apply to the Director- 
General for such protection whenever he deems it necessary. 

Article IX. The Corporation may, subject to all its obligations under this 
agreement, transfer or delegate all or any part of its rights, powers, and dis- 
cretions thereunder to any American corporation, directors, or agents, witli 
power to further transfer and suhdelegate ; such transfer, subtransfer, delega- 
tion or subdelegation to be subject to the approval of the Government. 

Article X. In the event of any bond or bonds issued by this loan being lost, 
stolen, or destroyed, the Corporation may notify the Minister of Finance 
of the Republic of China and the Chinese Minister at Washington, who shall 
authorize the Corporation to insert an advertisement in the public newspapers 
stating the payment of such, bond or bonds has been stopped, and to take such 
other steps as may appear advisable or necessary according to the laws and cus- 
toms of the country concerned. Should any bond or bonds be destroyed, or 
should such lost or stolen bond or bonds not be recovered after a lapse of time to 
be fixed by the Corporation, the Chinese Minister at Washington shall execute 
a duplicate bond or duplicate bonds for a like amount and deliver the same to 
the Corporation representing the owner or owners of such lost, stolen, or de- 
stroyed bond or bonds, which Corporation shall pay all expenses in connection 
with such delivery and execution of such duplicate bond or bonds for the 
account of the owner or owners of such bond or bonds. 

Article XL This agreement is executed In triplicate in English and Chi- 
nese; one copy to be retained by the Government, one by the United States Min- 
ister in Peking, and one by the Corporation ; and should any doubt arise as to 
the interpretation of this agreement, the English text shall be accepted as the 
correct one. 

Article XII. This agreement is signed subject to ratification by His Excel- 
lency, the President of the Republic of China, and to confirmation by the 
Directors of the American International Corporation, and shall not become 
valid until the actual fact of the aforesaid ratification and confirmation has 
been officially communicated by both contracting parties hereto to the Amer- 
ican Minister in Peking. 



114 


FOKEiaK EEIATTONS 


Signed at Peking this thirteenth day of the fifth month of the fifth year of 
the Republic of China, being the thirteenth day of May, Nineteen Hundred 
and Sixteen, Western Calendar: 

For the Government of the Republic of China, 

' ■ ■ 1 

Direetor-Qeneral of the National Conservancy Bitrcau of Gliina 
For the American International Corporation, 

■ 1 

On Behalf of Ernest T. Gregory, Representative 

of the American International Corporation 

ANTTEX 

With reference to the Huai River Conservancy Grand Canal Improvement 
seven (7%) per cent Gold Loan of 1016, signed this clay, it is understood by 
the contracting parties thereto that if, before the publication of the prospectus 
for the issue of this loan, any political or financial crisis should occur affect- 
ing the money markets of the prices of Chinese Government securities in such 
manner or to such degree as, in the opinion of the Corporation, vpIII render 
impossible the successful flotation and issue of this loan on the terms herein 
named, the Corporation shall be granted a period of six (6) months from the 
date on which this agreement shall have been signed within which to issue 
the loan to the public. If on the expiration of this period the marlcets are 
still unfavorable, then the Corporation shall be entitled to ask the Government 
for extension of time. If the Government should refuse to grant the extension 
of time requested, this contract shall become null and void, subject always to 
the repayment to the Corporation with acemed interest of any loan funds which 
may have been advanced by them subsequent to the signing of this agreement. 

Signed at Peking this thirteenth day of the fifth month of the fifth year of 
the Republic of China, being the tliirteenth day of May, Nineteen Hundred 
and Sixteen, Western Calendar: 

For the Government of the Republic of China, 

Director-General of the National Conservancy Bureau of China 
For the American International Corporation, 

' » 

On "behalf of Ernest T. Gregory, Representative 

of the American International Corporation 


tinclosure 2] 

The Director General of the National Conservancy Bureau to UimMter Reimoh 

May IB, 1916, 

Sir; I have the honor to acknowledge the receipt of your communication 
of the 10th instant, and have duly noted that the American International Cor- 
poration, recommended by the American Red Cross Society is now proposing to 
undertake the improvement of the Kiangsu section of the Grand Canal as a 
part of the Huai River conservancy scheme. This bureau recognizes this as 
proof that the said Corporation or other nominee of the American Red Cross 
Society consents to undertake the work of the Huai River conservancy and 
to assume the obligations which devolve on the American Red Cross Society, 
its representative or successor, by the terms of the Px’eliminary Loan Agree- 
ment between the Chinese Government and the American Red Cross Society 
which was signed January 30, 1914.^ Therefore on making this contract with 
the said Corporation it is agreed that the Preliminary Agreement between 
the Chinese Government and the American Bed Cross Society signed on Jan- 
uary 30, 1914, and extended for periods of one year and four months respec- 
tively,® will remain in force throughout the period of time during which the 
said Corporation is engaged on the work of the Kiangsu section of the Grand 
Canal. The said Corporation, or other nominee of the American Red Cross 
Society, shall, within the period during which the above mentioned work Is 
proceeding, draw up a final agreement in accordance with the terms of the 


»For. EeL 1914, p. 102, 


■For. Hel. IQltS, p. 212. 



cshusta 


115 


Preliminary Agreement, for carrying ont all the work of the Huai River con- 
servancy and arranging for the loan. I now send this reply in order to make 
the situation clear, and trust that you will note the same and make it a matter 
of record. 

Chin Pang-pino 


[Inclosure 3] 

AGBEEMENT FOB SOUTH GRAND CANAU OF SHANTUNG PEOVINCB IMPROVEMENT 

LOAN 

Whereas, the Government of Shantung Province with the approval of the 
Central Government of China is desirous of improving the South Grand Canal 
in Shantung Province and reclaiming certain land areas ; and. 

Whereas, this part of the Grand Canal is intimately related the Grand 
Canal vsdthin the scope of the Huai River Conservancy scheme, since it forms 
the upper regions of the latter, and as the benefits which will accrue to the 
people from the work are exceedingly great, the American International Cor- 
poration has been asked to arrange a loan to carry out the work, and the fol- 
lowing agreement has been entered into; — 

Hereinafter the Government of Shantung is called the “Government*', and 
the American International Corporation the “ Corporation 

Article I. The Government authorizes the Corporation to issue a gold loan 
on the terms and conditions hereinafter set forth for an amount not exceeding 
three million dollars ($3,000,000) U. S. currency. This loan shall be called 
the South Grand Canal of Shantung Province 7% Improvement Gold Loan. 

The denomination, wording and design of the bonds shall be determined 
by the Corporation, and all expenses incurred in connection therewith shall be 
borne by the Corporation; but the cost of engraving and printing the bonds 
shall be borne by the Government, which shall also furnish a facsimile of its 
signature and seal to be engraved on the bonds. The Chinese Minister in 
Washington, shall, previous to the issue of the bonds, also furnish a facsimile 
of his signature and official seal to be engraved on the bonds to signify the 
sanction of tlie Chinese Government to their issue and as a proof of the binding 
obligation of the Chinese Government. 

The first issue of the bonds shall be for two million five hundred thousand 
dollars ($2,500,0()0) U. S. currency at ninety (90%) per cent and shall be 
issued as soon as possible after the signing of this agreement In the event 
that the Government should desire to issue any part of the balance of the loan, 
the Corporation shall be given the option to purchase same at the market rate 
at the time the issue is made. All expenses such as banker's conamission, flota- 
tion charges, stamp charges, etc., shall be borne by the Corporation. 

Article II. The rate of interest for the loan shall be seven (7%) per cent- 
per annum on the aggregate amount of the bonds issued. After the signing 
of this loan agreement the Corporation will set aside the whole amount of 
the present issue and place it to the credit of the South Grand Canal Con- 
servancy Account Within six (6) months the Government shall pay the 
first interest coupon, and the amount of this interest shall also be placed to 
the credit of the South Grand Canal Conservancy Account All subsequent 
interest payments shall be made in semiannual instalments according to the 
amortization table hereto annexed. Thereafter, all unused funds deposited 
in China shall bear interest at the rate of four (4%) per cent per annum, 
and the unused balance deposited in America shall bear interest at the rate 
of two (2%) per cent per annum. The amount deposited in China shall at 
all times be kept at such a figure as to be sufficient for six (6) months use. 

Article III. The term of this loan shall be thirty (30) years. This loan 
shall be redeemed In twenty-five (25) equal annual instalments, dating from 
the fifth (5th) year of issue, by drawings which shall be held in New York 
at the office of the Corporation in conformity with the amortization table an- 
nexed hereto. The serial numbers of bonds drawn shall be published- in four 
(4) daily newspapers at the cost of the Corporation. Drawn bonds shall be* 
paid in gold at their face value. Bonds presented tor payment must be sur- 
raadered together with'their proper cotipons. Interest on d^awn bonds ceases 
on the day of drawing. - s ' : ^ ^ 

If after five (5) years from the date of the loan, the Government should 
desire to redeem the whole or any portion of this loan not yet redeemed, it 



116 


I'OEEIGK HEIATIOKS 


may do so by paying a premium of one and a half ( 1 %%) per cent on the 
par value of the bonds not yet redeemed. But in each and every case of such 
extra redemption the Government shall give (6) months previous notice in 
writing to the Corporation, and such extra redemption shall be affected by 
additional drawing as provided for in the prospectus of the loan. The re- 
deemed bonds and interest coupons will be received and cancelled by the Cor- 
poration when they shall be presented for payment. 

Article IV. This loan shall be secured by the lands which are to be re- 
claimed owned by the Government of Shantung Province, which said Govern- 
ment declares to be approximately three hundred thousand (300,000) mow. 
The Government declares that this land is not mortgaged at the present time 
and that it will not create a mortgage upon the lands during the term of this 
loan which will rank equal or prior to this loan. 

This loan shall be further secured by all revenues of the Government de- 
rived or which may be derived from the Government lands affected by the 
proposed work, and also by additional revenues from the sale of, lease of or 
taxation of all reclaimed and/or improved lands, as well as any special taxes 
which may be levied by the Government on lands benefited by this construc- 
tion work. 

It will further be secured by all taxes derived or to be derived from all 
other lands affected by this improvement which 'the Government estimates to 
be -approximately five hundred thousand (500,000) mow. 

It shall further be secured by all tolls and taxes now derived or to be de- 
rived from the use of the South Grand Canal in Shantung Province during the 
life of this loan. 

The Government hereby certifies that the estimated area of the above named 
districts amounts to eight hundred thousand (800,000) mow, and the area is to 
be confirmed by a map made after an actual survey. 

It shall further be secured by all machinery and tools purchased by loan 
funds. 

In case the said revenues prove insujaacient, the Government undertakes to 
make good the deficiency with otlier revenues provided for in the budget of 
Shantung Province. If no money is available for repayment on the due dates, 
then after a reasonable number of days of grace the Corporation shall super- 
vise the collection of the revenues pledged as security for this loan, and such 
supervision shall last until the outstanding amounts are all repaid. 

The director general shall be intrusted with the duty of managing and im- 
proving the reclaimed lands and the canal. 

The Government agrees to set apart a portion of the surplus receipts turned 
over to the Government by the Conservancy Bureau for the maintenance of the 
canal. 

All receipts in connection with the securities mentioned in this article shall 
be handled by the Conservancy Works Bureau and shall be deposited in the 
bank designated by the Corporation and the Government to meet the payments 
due for interest and repayment of principal of the loan. Any surplus left over 
shall be placed at the disposal of the Government. The above mentioned 
receipts are to be included in the Government’s budget. 

Article V. The proceeds of the loan are only to be utilized for the improve- 
ment of the South Grand Canal in Shantung Province, commencing at Pang 
Chia-kou and Lan-huang Pa in the North, and ending at Wei Shan Hu and 
Tai-erh-chuang in the South, and for such extensions as may be required, as 
well as for work In direct connection with the valley of the Wen and Ssu 
Rivers, the Po River and marshes and other tributaries of the main canal, 
and for the improvement of the reclaimed lands. 

The Government will furnish the Corporation as soon as possible after the 
signing of this agreement maps showing the lands which wiU be reclaimed by 
the proposed work and which have been designated as security for this loan. 

The work shall be completed within thirty (3) (30?) months from the signing 
of this agreement unless delayed by some unforeseen occurrence. 

Article VI. Upon the commencement of this work the Government shall with 
the approval of the Chinese Government, appoint a director general, who s h aO 
established a Head Works Bureau at Tsining-Hsien. In this bureau there shall 
be three (3) responsible departments, namely : — 

(1) A general affairs department with an ofiicer in charge appointed by the 
director general. This department shall take charge of all work in connection 
with miscellaneous affairs. 



OSLINA 


117 


(2) An engineering department in charge of an American chief engineer. 
This department shall take charge of all work in connection with the engi- 
neering operations, 

(3) Alq accounts' department in charge of -an American chief accountant. 
This department shall have charge of all receipts and disbursements connected 
with the fulfillment of this loan agreement. 

Whatever is done by these three (3)- departments must be submitted to the 
director general for his approval. 

All disbursements from the proceeds of the loan shall be made only after 
the approval of the director general. The American chief accountant is to be 
appointed by the director general at the recommendation of the Corporation. 

Article VII. The Government shall ask the Corporation to recommend a 
well qualified person to be selected and appointed as chief engineer by the 
director general. 

The qualifications of this chief engineer shall be the following: Five years 
experience in the engineering work of a weU known river; an engineer who 
enjoys the best professional reputation. 

The chief engineer shall be instructed at once to make a plan for the im- 
provement of the Canal and the draining of lands as specified in Article V ; 
which plan is to be approved by the director general in consultation with the 
contracting engineer who shall submit a detailed scheme of procedure. 

If the American chief engineer or the American chief accountant should 
prove untrustworthy, the director general shall duly inform the Corporation 
and dispense with their services and the Corporation is to nominate their suc- 
cessors. 

The salaries of the chief engineer and the chief accountant shall be ar- 
ranged between the director general and the Corporation. 

Any consulting engineer or other representative of the director general who 
shall be under his orders to inspect the progress of the work shall be afforded 
reasonable facilities for such inspection. 

Article VIII. The engineering work shall be executed by a contracting firm 
which shall receive a remuneration at a ce;:tain percentage of the total cost 
of the work. The contracting firm shall possess excellent professional reputa- 
tion, have ample experience and have to its record the execution of a great con- 
struction work. The Corporation may recommend to the director general for 
approval and appointment any contracting firm which they believe to be 
capable of doing this work speedily, durably and economically. The contract- 
ing firm shall actually supervise the work, and the procedure to be adopted in 
any work shall be submitted to the director general for approval. The con- 
tracting firm shall receive a remuneration amounting to ten (10%) per cent 
of the total cost of this work, besides which the contracting firm shall not de- 
mand any other fee. 

Article IX. The Government will provide sufficient protection for the work 
and all properties of the Corporation as well as for Chinese and foreigners 
employed thereon. 

Article X. The Corporation may, subject to all its obligations under this 
agreement, transfer or delegate all or any part of its rights, powers and dis- 
cretions thereunder to any American corporation, directors or agents with 
power to further transfer and subdelegate. Such transfer, subtransfer, delega- 
tion or subdelegation to be subject to the approval of the Government. 

Article XI. In the purchase of materials preference shall be given to Chinese 
materials when price and quality are equal. 

Article XII. In the event of any bond or bonds issued by this loan being 
lost, stolen or destroyed, the Corporation may notify the Chinese Minister at 
Washington who shall authorize the Corporation to insert an advertisement in 
the public newspapers stating that the payment of such bond or bonds has 
been stopped, and to take such other steps as may appear advisable ox neces- 
sary according to the laws and customs of the country concerned. Should any 
bond or bonds be destroyed, or should such lost or stolen bond or bonds n,ot be 
recovered after a lapse of time to be fixed by the Corpo:patinn, the Chinese 
Mbaister at Washington shall . execute a duplicate bond or b6^*d^ for a like 
amojunt and deliver the same to the Corporation, representing the owner or 
owners of i^uch lost, or stolen or destroyed bond or bonds^ which, Corporation 
.shall pay ail Reuses in connection with such delivery and, e:fecution of such 
duplicate bond , or bonds for .the account of the owner or owners of such bond 
or bonds. - . ? . . , 

106413^— rnime 18 . 



118 


POKBiaifr RELA.TI02srS 


Article XIII. All bonds, coupons and payments made and received in con- 
nection with tlie service of this loan shall be exempt from all Chinese taxes 
and imposts during the currency of this loan. 

The Corporation is hereby authorized to appoint an agent to act as trustee 
for the bondholders. 

Article XIY. This agreement is executed in quadruplicate in Chinese and 
English; one set to be retained by the. Government of Shantung Province; one 
by the Central Government; one by the United States Minister in Peldng and 
one by the Corporation ; and should any doubt arise as to the interpretation of 
this agreement, the English text shall be accepted as the correct one. 

Article XV. This agreement shall take eftect as soon as it has been ap- 
proved by the President of the Chinese Republic, and it will be automatically 
cancelled as soon as the entire amount of the principal and interest of the 
loan Is paid. 

Signed at Tsinan-fu, Province of Shantung, this nineteenth day of April, 
1916. 

Signed by : 


Witness : 

W. F. Caeet 


Representing the Shantung Government 
Ernest T. Gregory, 

Representing the American International Corporation 


ANNEX 


Regarding the security named in Article IV of this agreement; since there 
are definite plans which forecast a good prospect for the revenues of the 
next year from the renting and sale of reclaimed land in the districts of Tung 
Pin, Tsining and Yutai, and from calamity stricken private owned lands, which 
are to be improved by the conservancy work, and from the additional taxes 
collected from the use of the South Grand Canal; and since, moreover, in 
Article IV the Government guarantees to make good any possible deficiency 
in the revenues v^ith other revenues provided in the budget, the Govern- 
ment’s sincerity in the matter is amply demonstrated. In appreciation of 
the Corporation’s kindly sentiments, and in order to further demonstrate 
the importance It attaches to its good credit, it is hereby stipulated that three 
hundred thousand ($300,000) Mexican dollars will be set aside yearly from 
the land tax of the Shantung Government as a reserve fund for making 
good any possible deficiency in the loan service funds. The Shantung Gov- 
ernment will duly petition the Central Government to the effect that in no 
year will the above specially reserved fund be drawn upon before the pay- 
ments due on account of this loan have been fully met 

Signed at Tsinan-fu, Province of Shantung, this nineteenth day of April, 
19ia 

Signed by: 

Representing the Shantung Government 
Ernest T. Gregory, 

Representing the American International Corporation 

Witness : 

W. E. Caret 


Clndosure 4] 

MANDATE 

The state Department has been instructed to issue the following mandate: 

February 23. 

The development of agricultural enterprises depends solely on proper irriga- 
tion. So long as the rivers can be kept within their proper courses and the 
various tributaries continue to flow freely. Inexhaustible benefit will accrue 
from irrigation with absolutely no possibility of the embankments breaking. 
It can be said without contradiction that irrigation is attended with nothing 
but benefits. In our arduous duties day and night the affairs of the people 
occupy our first attention. The problems which have attracted our special 
attention are the rivers in the environs of the Capital, the Huai Ho In 
Elangsu and Anhui, the Slkiang in Kuangtung, and Tungting Lake in Hunan. 



OHmA 


119 


The question of Irrigation is a life and death question to the people; it is, 
therefore, our resolve that it shall be grappled with. We, however, are 
compelled gradually to attack the problem as the financial capacity of the 
country is limited. Hsu Shih-kuang has already been appointed director 
general of all affairs relating to the deepening of the rivers round about the 
Capital; while Tan Hsueh-heng has been made responsible for the dredging 
of the Sikiang. For the task of finding outlets for the Huai River the Na- 
tional Irrigation Bureau has already formulated the mode of procedure. 
Work on the rivers round about the Capital has already begun; but similar 
work on other rivers has been postponed through either the difficulty of 
raising funds or the failure of negotiating loans. On the other hand it 
must be remembered that however great the difficulties, perseverence will 
prevail in the end. Tan Hsueh-heng is hereby ordered to cooperate with 
Chang Min-chi in forwarding the progress of the various river works under 
their charge. The National Irrigation Bureau shall be held responsible for 
the work of finding outlets for the Huai Ho and the dredging of the Tung- 
ting Lake. The said bureau shall, with the cooperation of the authorities of 
the provinces concerned, set to work in this direction. First of all officials 
should be sent out to investigate and survey, while in the meantime funds 
should be raised for the actual carrying on of the work section by section 
with the view that actual results may thereby be attained. The aim is to 
complete the work of improvem^t within a few years so that agriculture 
may be developed and sources of money opened up. This will be our hope 
day and night 


File No. 893.811/224 

Minister Reinsch to the jSecretary of State 


No, 1075 American Legation, 

PeJdng^ May 15^ 1916* 

Sir: With respect to the statement in my despatch No. 1056 of 
April 28, 1916, to the effect that the idea of letting public construc- 
tion work on a commission basis was first introduced in the pre- 
liminary agreement for the Huai Biver Conservancy, I have the 
honor to make the correction that the idea was embodied in the pre- 
liminary agreement for the Shasi-Shingyi Bailway signed Decem- 
ber 18, 1915 (Lord ffrench agreement). But as this method was 
not adhered to in the final agreement for that railway, the introduc- 
tion of the method in question was practically made in the Huai 
Biver agreements. 

I have [etc.] 

Paxtl S. Beinsoh 


FUeNo.893.8Xl/226a 

The Secretary of State to Minister Reinsch 

[Tdesram] 

Depaktment op State, 

Washington, J'wne IB, 1916. 

Ameriean Intemational Corporation has approved Shantung 
agreement in principle subject to exchange of letters covering de- 
tails contemplated under agreement but not specifically provided 
fori i 

Corporsition ready approve Eaang^ agreement if made provincial 
as well as Guvenunent obligation similar Shanl^g agreement. 

Departm^ T?iil tomorrow tl^ough you tra,hamf, to Gatrell, repre- 
sentative of the Ameriean Jutemational Corporation, full instrac- 
tions suggested modifications. 



120 


PORETGN EELATlOlSrS 


American International Corporation also approves Siems-Carey 
railway construction contract in principle subject to modijBcation 
details, etc., as provided for under Article 17 ot agreement. 

Carey returning China immediately to discuss. Carey wiring An- 
derson direct. 

Department hopes Chinese will accept modifications suggested 
which will greatly facilitate sale of bonds American market. ^ 

This will give American interests valuable investment which may 
lead to important future developments. Use every effort cooperate 
with Gatrell, Anderson, assure success their negotiations. 

Lansing 


File No. 893.811/226 

Minister Reimch to the Secretary of State 

[Telegram] 

American Legation, 
Peking^ June 19^ 1916. 

Your June 15. Your detailed instructions not j^et received, but 
I am constrained to state that it will be hardly feasible or advisable 
to turn into provincial matter Kiangsu Caiial project which has 
from the first been treated as national, while Shantung project was 
initiated and pressed by the provincial authorities. To attempt to 
make Kiangsu project provincial would be taken as an affront to 
the Government It would raise endless difficulties of negotiation 
and would promise no substantial benefit either in security or facili- 
tating work. The Government will secure cooperation of Kiangsu 
authorities to the latter end. 

Reinsch 


Pile No. 893,811/227 

The Secretary of State to Minister Reinsch 

[Tel^am] 

Department op State, 
Washington^ June ^0, 1916. 

ALmerican International Corporation requests you transmit follow- 
ing to Gatrell : 

Corporation approves Shantung agreement and is ready proceed in accord- 
ance with terms thereof so soon as points now covered only in general way by 
agreement and minutes negotiations are clearly specified in order avoid any 
possible misunderstanding. This should be done by exchanging letters as 
follows : 

Shantung Agreement: Article II. Proceeds loan to be deposited National* 
City Bank New York to be transferred to China through and be held on deposit 
in China with International Banking Corporation. Amounts in silver sufficient 
to meet interest and amortization payments in gold in New York to be deposited 
in International Banking Corporation, Shanghai or Peking, fifteen days before 
due date cost of transfer to and from China to be borne by Government being 
ihcluded in rates of exchange which ibo be fixed on date transfer or prior 
thereto as mutuaUy agreed. All interest and amortization payments to be 
made by International Banking Corporation at its office New York. 

Article III. Drawn bonds to be presented ^ New York and paid in gold. 
Drawings payments to be made at office trustee appointed under Article XIII. 

Article IV. Upon completion canal improvement work. Conservancy Bureau 
to employ American engineer or Chinese engineer satisfactory to corporation 



CHIKA 


121 


to supervise maintenance canal during life of bonds. All receipts from reve- 
nues pledged as security for loan to be deposited by Conservancy Bureau with. 
International Banking Corporation in Obina pending transfer for payments ac- 
cording to Article II, interest to be paid thereon at 4% per annum and funds 
to be held subject to the order of Accounting Department as provided Section 
3, Article VI. 

Article VI. Loan funds to be expended only in accordance with plan pre- 
pared and agreed upon as stipulated in Article VII or as modified by mutual 
agreement. Loan funds to be withdrawn by auditor upon requisitions made 
by director general or chief engineer acting under his authority upon recom- 
mendation of contractor as provided Kiangsu Agreement. Working funds to 
be held by Accounting Department Conservancy Bureau, auditor being responsi- 
ble therefor. 

Article VIII. Corporation hereby recommends Siems-Carey Construction 
Company as contractors. 

Article XIII. International Banking Corporation New York designated as 
trustees. 

Corporation approves Kiangsu Agreement, provided, by exchange separate 
letters or amendment agreement itself, loan is made obligation both of Kiangsu 
Province and Central Government same as Shantung Agreement. (This neces- 
sary assure sale bonds as otherwise public might be disturbed difference char- 
acter two obligations issued for like purpose.) Letters should also be ex- 
changed containing provisions regarding deposits New York, China, costs trans- 
fers, fixing exchange, deposit and responsibility for pledged revenues, payment 
interest, amortization, drawings payment bonds, expenditures in accordance 
with plans agreed upon, requisitions to be made by auditor, maintenance canal 
during life loan, administration revenues in case default, same as in Shantung 
Agreement. (If collection by corporation after default unacceptable usual 
provision regarding administration by Maritime Customs satisfactory for both 
agreements.) Pledged revenues to be deposited with International Banking 
Corporation to be named as fiscal agent accordance Article V. Siems-Oarey 
designated contractors. Letters regarding Kiangsu Agreement should specify 
appropriate articles as in case Shantung Agreement. 

Upon receipt notification from American Minister Peking through State De- 
partment that Government approve agreements letters and that Siems-Oarey 
Company designated contractors, corporation will against temporary receipts 
deposit funds in accordance loan agreements pending issue bonds. Referring 
Articles VI and VII of Shantung Agreement and Article IV of Kiangsu, the 
corporation will, as soon as possible after letters exchanged, nominate competent 
persons as chief engineers and chief accountants. In general, by means these 
letters endeavor make operation two agreements as nearly alike as possible. 

Would greatly facilitate sale bonds if extra redemption provided Article III 
Shantung and Article II Kiangsu Agreement be made 102% instead of 101%. 
This not absolutely necessary but endeavor secure. If necessary might he able 
arrange 3 per cent interest instead of 2 per cent on deposits here. 

Lansing 


File No. 8&3.811/229 

Minister Reinsch to the Secretary of State 

[Telegramj 

AmEEIOAN liEGATIOir, 

Peking^ Jwie 26, 1916. 

My June 19. In view of all the facts I must recommend bankers re- 
consideratioh of BaangiSa matter. By treating Huai River prmect 
froiaihe beginning asnibtibnal we have thrown on the Chinese Gov- 
bmm^t the responsibility for gaining cooperation of provincial 
authorities where necessary and have avoided endless trouble and in- 
terference on the part of the latter throughout the course of work. 
If we have now to approach Ipcal authorities with a request for a 
separate guaranty which does not materially add to security we pot 



122 


FOREIGN RELATIONS 


only alienate central officials through whom we must work but we in- 
vite provincial intermeddling. Therefore, I beg to suggest that the 
prospectus might treat canal loan as a unit guaranteed by Central 
Government further secured by canal tolls and in the case of Shan- 
tung portion by special revenues. 

I had already received from the Chinese^ Government a promise 
that it would secure from Kiangsu authorities formal expression of 
readiness to further work ; it is one thing to hold the Government re- 
sponsible for securing such cooperation, another to solicit for our- 
selves by urging local authorities to guarantee an obligation of the 
Central Government. In the case of Shantung portion the initiative 
came from the province. 

Before proceeding any further I am awaiting your instructions. 

Reinsch 

File No. 893.811/230 

The American International Corporation to the Secretary of State 

New York, June 29^ 1916. 

Sir: We have the honor to .acknowledge receipt of the Depart- 
ment’s letter of the 26th of June,^ transmitting for our information 
a paraphrase of a telegi'am, dated June 26, 1916, from the American 
Minister at Peking, relative to the negotiations for the amendment 
of the Shantung and Kiangsu Agreements between the American 
International Corporation and the Chinese Government. 

We are today telegraphing Doctor J. N. Gatrell, our representa- 
tive at Peking, as follows: 

Consult American Minister, Refer to his cable to Department June 26. Ap- 
preciate difficulties situation. Is it possible cover both present af?reements 
under one agreement with Central Gove’rnment making terms of bonds all 
other conditions identical for both loans and treating old agreements as annexes 
to suggested agreement? Explain this important in order to establish market 
for bonds in view possibility later undertaking larger work, but make no 
additional commitment regarding Huai River scheme beyond that contained 
Kiangsu agreement. If this impossible, what is best you can do? Consult 
Anderson and secure his assistance in negotiations. 

We trust the Department may be pleased to instruct the American 
Minister at Peking to use his good offices in bringing about the 
arrangenaent suggested, which we believe would facilitate our efforts 
to establish a market for Chinese securities in this country. 

We have 1 etc.] Willard Slraight, 

Vice President 

File No. 893.811/230 

The Secretarv of State to Minister Beinsch 

[Telegram] 

Department op State, 
Washington^ J-vS/g S, 1916, 

Tour June 26. See cable of International Corporation to Gatrell 
of June 29. Cooperate with Gatrell along lines mentioned. 

Lansing 


* Hot printed. 




0HIH-A 


123 


FUe No. 898.811/281 

Minister Reinsoh to the Secretary of State 

[Telegram] 

Amekican Legation, 
Peking^ September 1916. 

I am informed that on September 15 the Japanese L«egation in- 
formally filed with the Chinese Government a memorandum stating 
that the Japanese Legation understands that the Conservancy Bu- 
reau has concluded an agreement with the American International 
Corporation for the improvement of the Grand Canal in Shantung 
and observing that if foreign assistance is asked in this matter ap- 
plication must first be made to Japan. This claim is based on the 
conventions between China and Germany of March 6, 1898, and be- 
tween China and Japan of May 25, 1915. I am informed that the 
Minister for Foreign Affairs intends to reply that incorporeal treaty 
rights respecting Shantung have not yet accrued to Japan; the action 
suggested by Japanese Legation would therefore anticipate the as- 
sent of Germany to transfer of such rights and that the [omission] 
of the treaty of 1898 as developed in practice has actually been con- 
fined to railway and mining enterprises. 

It is the impression of the Minister for Foreign Affairs that the 
Japanese desire not so much to exclude the Americans from this 
particular enterprise as to safeguard themselves against having the 
situation in Shantung materially chan^d to their disadvantage be- 
fore a treaty with Germany can be made. But there is no assurance 
of this until the Japanese have been further heard from. While 
the negotiations were proceeding I quite frankly informed Minister 
Hioki concerning the projected enterprise, 

Keinsch 


File No. 893.S11/234 

Minister Reinsoh to the Secretary of State 

[Extract] 

No. 1224 Amebioan Legation, 

PeJcing, October iS, 1916. 

Snt : I have the honor to report on the progress of the negotiations 
with respect to the Grand Canal improvement work in the Province 
of Shantung, reported originally in my No. 1066 of April 28 last. 

I have the honor to enclose a translation of an tmdated letter, writ- 
ten to the American International Corporation by the Shantui^ Pro- 
vincial Government, and received by the former during Maj^, in 
which the approval of the loan by. the Central Governmeat is recited. 

On June 27, last, a letter was -written to the representative of the 
Province, addressed to the Governor of Shantung, making ipaown 
to him the acceptance by the American International Corporation 
of the Agreement of April 19!, 1916, and the desire of the corporaticwQ 
further to negotiate with respect to a supplementary ^eement con- 
peming certam matters of admihi^rative control (vide: your tele- 
gram to the Jiege.tion of June 20) . This letter was held back at the 
request of the represen,tative of the province, and was embodied in 



124 


FOKEIGIS- BEIATIOlSrS 


a letter written to the Goyernor of Shantung on August 23, last, to 
which no reply has been received by the Corporation. 

Mr. Pan Fu was designated by the Governor to carry on the 
negotiations for the supplementary agreement; and after long and 
arduous discussions the main provisions asked for received Mr. 
Pan’s acceptance. The provisions were then to be submitted to the 
Governor for his approval. For this purpose Mr. Gregory, accom- 
panied by Mr. Pan Fu, proceeded to Tsinanf u. 

In the meantime, on September 15, a telegram was received from 
New York (No. 523) by the representative of the American Interna- 
tional Corporation to the effect that the latter must insist upon a 
loan service charge of one-quarter of one per cent in addition to the 
discount already allowed. This new demand, dealing with a matter 
of so small importance and yet put forth in a categorical manner at 
this late stage of the negotiations, did not serve to help matters along, 
although it was accepted by Mr. Pan. 

The Governor, who had been absent from Tsinanfu, having re- 
turned to that town, was on September 26, to be approached for his 
signature. Evidently^ however, a powerful obstruction and opposi- 
tion had been organized, for when Mr. Gregory interviewed the 
Governor he declared point-blank that he could not see his way to 
signing the preliminary agreement. 

The outstanding feature of the situation thus created was that the 
Governor claimed that the supplementary land tax, which was to 
serve as security under this loan, had alreaay been pledged previously 
to secure a loan of $2,000,000 made by the Bank of China, the Bank 
of Communications, and other interests. This extraordinaiy state of 
affairs indicates the laxness of Chinese j&nancial administration. 

When the refusal of the Governor to sign the contract was made 
known if) the Legation, the matter was immediately discussed with 
the Minister of Financ^, the Premier and the President himself. All 
these high officials maintained an entirely favorable attitude and ex- 
pressed their desire that the supplementary agreement should be im- 
mediately concluded; and instructions were issued by telegraph to 
the Governor of Shantung, authorizing him to substitute the proceeds 
of the national stamp tax in Shantung as security in place of the 
supplementary land tax. 

Mr. Gregory, who had returned to Peking, thereupon again went 
to Tsinanfu, confident that the signature would be obtained without 
question. The instructions from the Central Government were, how- 
ever, ignored by the Governor, who now stated more positively^ what 
he had intimated in the first interview ; nameljr, that opposition to 
the contract had arisen in the Shantung Provincial Assembly, and 
that all the points of the agreement would^ have to be gone over 
again. Mr. Gregory’s argument that the original contract, having 
been completely concluded before’ the reconvening of the Provincial 
Assembly, was not within the jurisdiction of the Assembly, did not 
make any impression on the Governor, 

' I had an informal interview last night with his excellency Dr. 
Chen Chin-tao, Minister of Finance, who is , also Acting Minister 
fbr Foreij^ Affairs, in which he stated to me that the Central 
Goveimment had received a formal communication from the Gov- 
ernment of Shantung, claiming that the contract had become hull 
and void through forfeiture. 



OBmA 


125 


The corporation argued that the claim of forfeiture of the original 
contract on account of failure to deposit $2.5005000 immediately 
upon the execution thereof is not well founded, because the for- 
feiture plause was vitiated by the Governor’s acting, until the be- 
ginning of October — ^more than five months after the signing of the 
original contract — on the assumption that the contract was still in 
force. 

I stated to his excellenc3r our position on this point ; namely, that 
if forfeiture might be said to have occurred, it was waived by 
subsequent negotiations. Dr. Chen stated that this was also his 
view. ^ He stated that all the officials^ of the Central Govermnent 
were in favor of immediately concluding this contract, and that a 
number of the Shantung members of the National Parliament, as 
well as the Private Secretary of President Li, a Shantung man, had 
been induced to proceed to Tsinanfu, in order to argue with the 
members of the local Assembly. 

Considering the fact that the making of this contract was origi- 
nally requested by the Shantung Government and that no shadow 
of opposition had hitherto been seen, the sudden appearance of a 
well organized local obstruction has led to the surmise that in- 
fluences unfavorable to American enterprise in China, particularly 
in Shantung, have been active in organizing this local opposition. 
From confidential reports which have reached me it would however 
appear that the trouble is due to a certain amount of distrust of the 
Central Government on the part of the local Assembly- It would 
seem that a tale is current to the effect that the enrineering work 
would require only $1,000,000, and that the rest of the money is to 
be spent by the Central Government, while the burden is to be im- 
posed on the province. This is of course a misunderstanding which 
I hope can be cleared up without delay. 

The Governor, Tsai Ju-kai, who originally negotiated the agree- 
ment, was greatly in favor of the project. His successor, Sun- 
Fa-hsii, Civil Governor during the negotiations reported above, was 
unpopular in the province and was apparently fearful of making 
any opposition to the Assembly ; he has been transferred to another 
province, and Chang Huai-chih will act as Military and Civil Gov- 
ernor. The latter’s attitude has not yet been determined, although 
he is believed to be favorable to the Canal enterprise. 

I also have the honor to report that on September 25 last, the 
Japanese Legation handed to the Chinese Foreign Office a memo- 
randum concerning the Grand Canal enterprise in Shantung, a copy 
of which is enclosed herewith. * * * , 

I have the honor to enclose a copy of a memorandum by the 
Minister, and one by the Secretary of Legation, in which the attitude 
taken by the Legation is stated.^* In oral conversation with the 
Acting Minister lor Foreign Affairs the position thus indicated has 
been taken by me, and the Minister appears to share the views of 
the Legation in this matter. 

With respect to the Kiangsu section of the Canal, the demand of 
the American International Corporation that the Provincial Govern- 
ment should guarantee the loan, referred to in your telegram of 


»Not printed. 




126 


FOREIGir BEIATIOKS 


June 15 and in my telegrams of June 19 and June 26, has delayed 
negotiations. The political situation in Kiangsu is somewhat un- 
certain, and the Central Government has only now sent Mr. Pan 
Fu to that province, in order to prepare the way for cooperation of 
the local authorities with the Central Government in the matter of 
the loan. I believe that it will be possible to get a formal expres- 
sion of such cooperation. 

From the above report, it will appear that the method of nego- 
tiation followed in this important matter is radically wrong, and 
win inevitably and at all times lead to endless trouble and the ex- 
penditure of fruitless effoits in China. If the origintll contract 
had been unconditionally accept^ by the American International 
Corporation, it would have been just as easy^ subsequently to get the 
necessary administrative modifications and interpretations; but the 
whole enterprise is endangered when, after a general agreement has 
been arrived at, the contract is allowed to remain pending while 
minor modifications are being discussed. This method secures for 
such minor modifications an importance far beyond their real con- 
sequence. It is highly to be desired and absolutely essential that 
in the future American concerns attempting to do business in China 
should definitely make up their minds as to what they want and 
what they can grant before the main contract is finally signed. 
Nothing is more instating to the Chinese than to have long and 
painful negotiations come to an end, supposedly definitive, and 
then to find that the negotiators on the other side continue to discover 
things which they would like to have put into the contract. 

I have [etc.] Paxil S. Reinsch 


tlndosure 1 — ^Translation] 

Tfie Shantung Provincial Government to the American International Corpora- 
tion 

[No date ; received in May, 1916.] 

The Shantung Provincial Government formerly telegraphed to the Central 
Government the facts concerning the signing of the 7 per (*ent loan for the 
improvement of the Shantung section of the Grand Canal, and the Shantung 
Provincial Government subsequently received a telegraphic reply from the 
Administrative Council saying that a presidential mandate has been issued 
permitting the carrying into execution of tlic already signed Shantung loan 
for work on the Grand Canal and ordering that the same he notified to the 
Ministries of Finance and of Agriculture and Commerce, and to the National 
Conservancy Bureau. 

Subsequently the final complete contract was sent to the (Central Govern- 
ment, and on the 27th of April a mandate was issued ordering the same to be 
transmitted to the Ministries of the Interior, of Finance, and of Agriculture 
and Commerce, as well as to the National Conservancy Bureau, to be placed 
on record. The contract is ordered to become operative. 

Having received this reply this communication is now sent for your [omis- 
sion] to be placed on record. 

The Shantuno Pbovxnciax- Government 


[Indosure 2 — Translation] 

Memorandum from the Japanese Legation to the Chinese Government 

We have heard that the Chinese oflBlcials have made a contract with American 
capitalists for a loan of $3,000,000 for the renovation of the Grand Canal in 
the province of Shantung On the 29th ultimo the Japanese Minister, ** lAn ” 



CHINA 


127 


(i. e., Hioki), had an interview with the Minister for Foreign Affairs, Chen, 
at which inquiries were made about this matter. The Minister, Chen, stated 
that this loan had been negotiated between the Conservation Bureau and the 
American capitalists. Although it had been heard of, neither the Ministry 
for Foreign Affairs nor the Ministry of Finance knew the details. The 
Japanese Legation has now obtained definite information to the effect that 
in April of this year the Conservation Bureau drew up and sealed an agree- 
ment with the American International Corporation and that now negotiations 
are proceeding with regard to the deposit of the funds and the method of 
carrying on the work. 

I wish to observe that in Article 3 of the sealed agreement regarding the 
lease of Kiaochow, dated March 6, 1898, the following things are specified 
regarding preferential rights in Shantung Province: 

In case of nndertakins: any work in Shantung Province, if foreisrn labor, capital, or 
materials are required, China shall first apply to German capitalists or merchants to 
know whether or not they are willing to undertake the said work and furnish the 
materials. 

Two years ago Japan engaged in war for a year with Germany and expelled 
Germany from all Influence in the Province of Shantung. The consequence 
was that all the rights and privileges which Germany had obtained in Shan- 
tung by treaty or otherwise reverted to Japan. 

Also in Article 1 of the sealed convention between China and Japan of 
May 25, 1915, relating to Shantung Province, the Chinese Government, in 
regard to the above-mentioned rights and privileges granted, acknowledges 
all previously arranged with Germany as appertaining to Japan. From the 
above it is plain that in the matter of improving the Grand Canal within the 
Province of Shantung by the Chinese officials, if foreign assistance is to be 
asked, application must first be made to Japan. 

Bepiember 15^ 5th Year of Taisho 119X6}. 


File No. 893.811/231 

The Acting Secretary of State to Minister Reinsch 

[Telegram] 

Depaktment op State, 

’Wa^hington^ November 6^ 1916. 

Tour telegram of September 25. ^ If Foreign Office replied as 
you anticipated you may support it in that attitude. In any event 
inform it this Government reserves all American rights. 

Eeport any further action by Japan. 

Polk: 


File No. 893.811/235 

Minister Reinsch to the Secretary of State 

No. 1267 American Legation, 

PeTdng.^ November 15^ 1916. 

Sir: Referring to my despatch No. 1224 of October 13, last, con- 
cerning the Grand Canal improvement work in Shantung Province, 
Mr. W. F. Carey has reported to me that on the 28th ultimo, Mr. 
Debuchi, First Secretary of the Japanese L^ation, called on hira 
and, among other things, spoke about the Canal enterprise. Se 
assured Mr. Carey that the Japanese entertain the mo^ friendly 
disposition towards the Sieras-Oar^y Company. He continued: 

♦ * * that we must not take their inquiries on the Grand Canal, for instance, 
as meaning anything more than they were anxious that China sliould recog- 
nize the fact tiiat Japan had by might taken over the pojsition of Germany 
in. the Province of Shlantmlg. He said that he realized quite fully that -legally 



128 


FOREIGN REIATTONS 


as yet Japan did not have the rights of Germany in Shantung; but that, 
inasmuch as they had put the Germans out of this province, and inasmuch 
as by the twenty-one demands made on China in 1915 (wherein one of these 
demands stipulated that should Germany and Japan come to an agreement 
whereby Germany relinquished her position in Shantung to Japan, that 
transaction should be recognized and binding upon the Chinese Government), 
therefore, while this procedure as yet had not actually taken place, neverthe- 
less it was a procedure that would at the close of the war take place ; and 
that Japan was only anxious that China recognize the fact that Japan was 
actually now in Germany’s position in this province. Ho stated that Japan 
did not want and would no-t do anything to prevent the construction of this 
waterway; that he realized it was a much needed improvement, and as a 
matter of fact it was an improvement that Japan herself desired. 

Mr. Debuchi assured Mr. Carey that the Japanese would not press 
their claim to the extent that it might endanger the carrying out 
at this time of the Canal improvement. 

I am not in a position to report the complete solution of the 
tangle which was explained in the Legation’s No. 1224 of October 
IS, as the situation is very complicated, it has seemed well to the 
American representatives here to leave the solution of the matter 
in the hands of Mr. Eoy S. Anderson and Mr. Pan Fu, the ofiicial 
who is most intei^ested in the realization of the Canal improvement 
plans. Mr. Pan has, during the last three weeks, been working on 
the Kiangsu situation and lias reported that the local officials and 
gentry have now been brought in line so as to support the Central 
Grovernment in this matter. Mr. Pan has now proceeded to Tsinanfu ; 
the new Governor of Shantung, Mr. Chang Huai-chih, with whom 
Mr. Pan is on good terms, is favorable to the enterprise and it is 
believed that the local opposition can now be overcome within a very 
short time. 

I have [etc,] 

Pato S. Retnsoh 


FINANCIAL AFFAIRS—LOAN AGREEMENTS WITH LEE, HIGGIN- 
SON AND COMPANY AND WITH THE CONTINENTAL AND COM- 
MERCIAL TRUST AND SAVINGS BANK OP CHICAGO. OPPOSITION 
OP THE CONSORTIUM GROUPS; ATTITUDE OP THE UNITED 
STATES 

Pile No. 893.61/1741 

Loan agreement between the Chinese Go'verrmsrvt and Lee^ Higginson 

and Company 

[Left at the Department by the Counselor of the Chinese Legation] 

This agreement, made this 7th day of April, 1916, between the 
Govermnent of the Republic of China, represented by His Excellency 
Doctor V. K. Wellington Koo,. Chinese Minister to the IJnited 
States, acting in the name and on behalf of the Minister of Finance 
of the Republic of China by special authorization, and Lee, Higgin- 
son and Company, of Boston, Massachusetts, Xew York City, Wew 
York, and Chicago, Illinois. 

Whereas the Chinese Government has heretofore appointed 
Messrs. Lee, Higginson and Company its fiscal agents in UieUnited 
States of America; and 

Whereas the Chinese Government now desires its said fiscal agents, 
lifessrp. Lee, Higginson and Company, to offer for sale five nuUion 



OHrfTA 


129 


dollars ($5,000,000) principal amount of six per cent three-year 
^easury gold notes, dated April 1, 1916, payable April 1, 1919, bear- 
ing interest at the rate of six per cent (6%) per annum payable 
semi-annually on October 1st and April 1st in each year; 

Kow, therefore, the parties hereto do agree as follows : 

1. The Chinese Government authorizes Lee, Higginson and Com- 
pany to act as its fiscal agents for the purpose of offering for sale 
five million dollars ($5,000,000) principal amount six per cent three- 
year Treasury gold notes of the Republic of China. Said notes axe 
to be direct and binding obligations of the Republic of China, are 
to be signed in the name of the Chinese Government by His Excel- 
lency Doctor V. K. Wellington Koo, Minister of the Republic of China 
to the United States of America, at Washington, D. C., and shall 
also bear the official seal of the Chinese Legation at Washington, D. 
C., and are to be countersigned by Lee, Higginson and Company, 
its fiscal agents. The notes are to be dated April 1, 1916, and are to 
be payable April 1, 1919 ; they are to be in coupon form registrable 
as to principal only in the denomination of one thousand dollars 
($1,000) each and to bear interest at the rate of six per cent (6%) 
per annum payable semi-annually on October 1st and April 1st in 
each year, and are to be paid principal and interest in gold coin of 
the United States of America of the present standard of weight and 
fineness at the office of Lee, Higginson and Company, New York 
City. Upon the request of Lee, Higginson and Company, the Chi- 
nese Government will issue coupon notes in denominations of one hun- 
dred dollars ($100), or of five hundred dollars ($500), or of five 
thousand dollars ($5,000), or will issue registered notes without 
coupons in denominations of one thousand dollars ($1,000) or any 
multiple thereof. If coupon notes of denominations other than one 
thousand dollars ($1,000) or registered notes without coupons shall 
be issued, they shall be issued and may be interchangeable with any 
other notes of such issue under such scheme or plan as may be 
necessary or desirable to conform to the rules of any stock" ex- 
change. 

The notes of this issue are to he subject to redemption at par and 
accrued interest upon October 1, 1917, and upon any interest day 
thereafter before maturity by operation of a sinking fund on thirty 
(30) days’ published notice. On the first day of August, 1917, and 
On the first day of February, 1918, and on the first day of August, 
1918, the Chinese Government will deposit with Lee, Hi gg inson and 
Company the sum of one million two hundred and fifly thousand 
dollars ($1,250,000) or such lesser sum as shall eqpal one-quarter of 
the principal amount of the notes which have at any time been issued, 
for the purchase or redemption of said notes. Each such sinking 
fund instalment if reasonably practicable shall be applied by Le6; 
Higginson and Company within twenty (20) days after thei receipt 
thereof to the purchase of notes at a price not exceeding par and ac- 
crued interest. In case the cost of any such notes so purchased shall, 
because of the inclusion in such cost of acbrued interest, exceed the 
par value of the notes so purchased, Lee, Hfgginson and Company 
wiU pay the difference between par and the cost of said notes out of 
any monies on deposit with Lee, Higginson and Company, other than 



130 


FOBEIGIT EEIATIOlirS 


sinking fund monies, after notifying the Chinese Minister at Wash- 
ington; if there are no monies on deposit other than sinking fund 
monies at the time or if the amount on deposit, other than sinking 
fund monies, is not sufficient to pay the said difference then Lee, 
Higginson and Company will advance and loan to the Chinese Gov- 
ernment such amount as may be necessary to make up the deficit. 
Any monies so advanced by Lee, Higginson and Company shall be 
repaid with interest at six per cent (6%) per annum by the Chinese 
Government. All notes so purchased shall cease to bear interest and 
shall be immediately cancelled and delivered by Lee, Higginson and 
Company to the Chinese Legation at Washin^on. 

In case prior to the twentieth day of August, ^ or the twentieth 
day of February, after the receipt of any such sinking fund pay- 
ment, Lee, Higginson and Company shall fail to purchase notes to 
an amount sufficient to esdiaust the monies in the sinking fund, Lee, 
Higginson and Company within five (5) days thereafter shall draw 
by lot notes to be redeemed on the first day of October or the first 
day of April to such amount as shall be sufficient at par to exhaust 
the monies in the sinking fund available for such purposes. Lee, 
Higginson and Company shall give to the Chinese Minister at Wash- 
ington at least two (2) days’ notice of such drawing^, stating the 
amount of notes purchased with the monies in the sinking fund and 
the amount of notes to be redeemed, unless such notice shall be waived 
by the Chinese Minister. Upon the completion of such drawing, Lee, 
Higginson and Company, at the expense of the Chinese Government, 
win publish notice of redemption of the notes so drawn at least once 
a week for three consecutive weeks in two daily newspai)ors of gen- 
eral circulation published in the City of New York, the first publica- 
tion of such notice to be at least thirty (30) days prior to the date 
therein appointed for redemption. Such notice shall contain the 
numbers of the notes so drawn and the date appointed for their 
redemption, which shall be the date of the next interest payment, with 
an announcement that on and after that date, on presentation and. 
delivery at the office of Lee, Higginson and Company in the City of 
New York of said notes and all coixpons pertaining thereto and 
maturing on said date of redemption and on subsequent dates, the 
notes so drawn will be paid at par and interest accrued to the date of 
redemption. Outstandmg notes so drawn will cease to bear interest 
on and after the date appointed for redemption in said notice, not- 
withstanding anything stated to the contrary in said notes or coupons 
pertaining thereto. All notes redeemed by operation of the sinking 
fund shall be immediately cancelled by Lee, Higginson and Company 
and be delivered to the Chinese Legation at Washington. At the 
completion any redemption, Lee, Higginson and Company will render 
an account to the Chinese Minister at Washington of the notes pur- 
chased and redeemed and the numbers thereof and the total cost of 
such purchase and redemption. 

The notes are to be substantially in the form hereto annexed, 
and the Chinese Government agrees to make provision for their 
payment, principal and interest, in accordance with their terms. 
These notes are to be used for industrial, municipal, educational 
and other similar purposes, as provided in the Government budget 
of 1916. 



CHI2jrA 


131 


At least ten (10) days before any instalment of interest of said 
notes shall become due, the Chinese Government shall deposit "with 
Lee, Higginson and Company, New York Citjj, a sum sufficient to 
pay the same in full, including the interest upon any notes called 
for redemption, and shall pay to Lee, Higginson and Company the 
^ount of any advances made by Lee, Higginson and Company with 
interest thereon as hereinbefore provided, and within ten (10) days 
before the date of the maturity of the notes the Republic of China 
shall deposit a sum sufficient to pay at such maturity the principal 
and interest of all said notes then outstanding. 

Until definitive engraved notes are ready, temporary notes may 
be issued, either printed or litliogra|)hed in denominations of one 
thousand dollars ($1,000) or any multiple thereof, as Lee, Higginson 
and Company may desire. Such temporary notes will be of the same 
force and effect as the definitive engraved notes until exchanged for 
the latter. The Chinese Government will cause definitive engraved 
notes in form satisfactory to Lee, Higginson and Company, to be 
prepared promptly and to be delivered without charge or expense 
to Lee, &gginson and Company, to be by them exchanged for the 
outstanding temporary notes. 

Provision may be made for listing such notes on the New York or 
Boston Stock Exchange if in the judgment of Lee, Higginson and 
Company such listing is desirable and is agreed to by the Chinese 
Government through its Minister at Washington. 

2. If a public offering of any of the notes is made, the price for 
such offering shall be not less than ninety-seven per cent (97%) of 
the par value plus accrued interest, but Lee, Higginson and Com- 
pany, as fiscal agents, from time to time may fix the price at which 
said notes may be privately offered for sale subject to the provisions 
of Paragraph 4. They may issue interim receipts to the pur- 
chasers of the notes. 

All expenses in connection with the printing, engraving, and execu- 
tion of said notes and interim receipts, and all expenses incidental 
to their preparation, shall be paid by the Chinese Government, which 
expenses shall not be reckoned in determining the net amount which 
the Chinese Government shall receive, but Lee, Higginson and 
Company shall bear all expenses in coimection with the advertising 
and sale of said notes. 

3. On behalf of the Chinese Government, the Chinese Minister 
will, as promptly as possible, but not necessarily prior to the offer- 
ing of the notes for sale deliver to Lee, Higginson and Company 
a document to be signed by the Minister of Fin^ce of the Chinese 
Government, stating that the issue of said six per cent three- 
year Treasury gold notes has been duly authorized and is in accord- 
ance with the Constitution and laws of the Republic of China, 

4. The compensation of Lee, Higginson and Company for their 
services in this connection shall be a commission which shall equal 
the difference between the price at which the notes may be sold, ex- 
clusive of accrued interest, and ninety-three per cent (93%) of the 
par value, but not exceeding four per cent (4%) of the par value. 
The Chinese Government shall receive net not less than ninety-three 
per cent (93%) of the par value of the notes sold with accrued 
mterest, subject, however, to the provisions of Paragraph 2 hereof. 



132 


FOKEIGIT HJBLATIOISrS 


The proceeds of the notes shall be deposited with Lee, Higginson 
and Company, and out of such proceeds there shall first be applied 
an amount sufficient to pay the principal and interest on the ad- 
vance of one million dollars ($1,000,000) made by Lee, Higginson 
and Company to the Chinese Government on April 3, 1916, and the 
remainder shall be credited to the account of the Chinese Govern- 
ment to be drawn upon from time to time by order of the Chinese 
Government signed by its Minister at Washington, until and unless 
otherwise instructed in writing by the Chinese Governnaent. All 
monies remaining on deposit at any time with Lee, Higginson and 
Company will be allowed interest at such rates as is customarily 
allowed on deposits of similar character, which shall be agreed upon 
with the Chinese Minister at Washington and which, until modified, 
shall be at the rate of two per cent (2%) per annum. 

5. Lee, Higginson and Company, for themselves, their associates 
and agents, agree to use their best efforts to accomplish the sale of 
said notes at the price and upon the conditions aforesaid, and agree 
to advise promj)tly from time to time the Chinese Minister at 
Washington, D. C., of the amounts of the proceeds of said notes, 
less commissions and expenses aforesaid, which have been placed 
from time to time to the credit of the Chinese Government. 

6. The offering of said notes shall be made on or before April 15, 
1916, with the proviso that Lee, Higginson and Com]>any, acting 
solely in the interests of the success of the loan, may, if the market 
conditions with respect to these notes make it wise or necessary, 
postpone this offering to a date not exceeding seven days from April 
15. If Lee, Higginson and Company should deem it desirable to 
postpone the offering beyond such or any extended period, and tlie 
Chinese Government by its Minister at Washington shall not agree 
to such extension, then this agreement shall be null and void except 
as to any notes theretofore issued and sold. 

Lee, Higginson and Company, if they so desire, may associate 
with themselves as principals in this undertaking, other banfciug 
firms, banks or trust companies, provided, however, that such bank- 
ing firms, banks or trust companies shall be first approved by the 
Chinese Minister at Washington. Lee, Higginson and Company may 
employ such other banking firms, banks or trust companies as they 
may desire in order to assi^ the sale or disposition of said notes. In- 
dependently of their fiscal agency, Lee, Higginson and Company 
shall have the right to purchase said notes on their own account, 
at a price which, subject to the terms of this agreement, shall net 
the Chinese Government not less than inety-three per cent (93%) 
of the face value of the notes and accrued interest. 

All notices required to be given hereunder shall be in writing 
and shall be mailed either to Lee, Higginson and Commny at No. 
43 Exchange Place, New York City, or to the Chinese Legation at 
Washington, D. C., as the case may be. 

7. This contract will bind and inttre to the benefit of the partner- 
ship of Lee, Higginson and Company as now or hereafter organized, 
and also to any successor firm. 

La witness whereof, His Excellency, Doctor V. K. Wellington 
Kog, Chinese Minister at Washington, acting in the name of the 
Government of the Republic of China and on behalf of the M^ister 
of Finance, under special authorization as above, has hereunto signed 



CHINA 


133 


his name and caused the seal of the Chinese Legation at Washington, 
D._ C., to be afl&xed, and said Lee, Higginson and Company by Fred- 
eric W. Allen, a partner, has hereunto signed its firm name this 
7th day of April, 1916. 

Lee, Higginson & Co. 


FUe No. 898.61/1643 

Minister Reinsch, to the Secretary of State 

[Extract] 

No. 1053 American Legation, 

Peking^ April 1916. 

Sir : I have the honor to enclose a translation of a note dated the 
4th instant from the Minister for Foreign Affairs, dealing with the 
authorization of Dr. V. K. Wellington Koo, the Chinese Minister at 
Washington, to negotiate a loan with Messrs. Lee, Higginson & 
Company. There is likewise enclosed a copy of a note dated April 
5, from H. E. Liang Shih-yi, stating the purpose for which the 
Chinese Government intended to use the proceeds of that loan. 

While the movement of disintegi-ation was in progress, and as 
long as it seemed that a strong organization of the opposition might 
be effected, I felt constrained in my telegrams to you to advise against 
the completion of the loan for the present. However, the utter dis- 
organization which exists among the revolutionists in Kwangtung 
and Kwangsi, the fact that the army of the Central Government has 
been k^t entirely intact, but especially the fulfillment on the part 
of the Government of all the demands of the revolutionists dealing 
with institutional changes, have created a situation imder which I 
am constrained to admit that no valid gi-oimd exists for refusing 
to complete this contract, notwithstanding the outcry which would 
probably be raised against it by the revolutionary element. To these 
considerations must be added the fact the organization of men in 
charge of the Central Government and of the loyal Provinces, rep^ 
resenting as it does the constituted authority of the State, is also the 
only one from which, under all the circumstances, the aversion of 
total anarchy and disorganization can be expected. 

It is not, of course, assured that the men constituting the Govern- 
ment may be able to avert disaster, but disaster would the more 
surely come if legitimate sources oi revenue for carrying on the 
ordinary functions of Government, including the maintenance of 
law and order, were to be withheld. 

I have [etc.] 

PAuii S. Recnsoh 


[Inclosure 1 — Translation] . , 

The Minister for ^Foreign Affairs to Minister Beimeh ' 

Nq. 458* Foreon Oefiob, 

PeJdngy April i 1916* 

' SiB : Tbe of Finance reports that 3VIr. teii,' the Ohinebe Stliilsier at 

WaSington, has' been^ authorized to negotiate a loan with Messrs. Lee, Higgin- 
son and Company. The said company has agreed to take Chinese Government 
Treasury notes to the amount of $5,000,000 gold, bearing interest at 6 per cent, 



134 


FOEEIGH EEIATIOB'S 


payable in three years, and dating from September, 1917, and to be paid in 
equal instalments every six montbs. On the conclusion of the agreement the 
said company has agreed to advance immediately to the Chinese Government 
$1,000,000 gold on account. Minister Ku has been given full powers to sign 
the agreement and the Treasury bonds and to draw the advance as well as 
to attend to all other business connected with the transaction. We are asked 
to send a formal notification to the American Minister at Peking asking him 
to notify by telegraph the American Department of State so that the Depart- 
ment may notify the company concerned. 

We therefore now notify you, and ask that you will immediately telegraph 
to the American Government asking them to notify Lee, Higginson and Com- 
pany. 

A necessary despatch, 

[Seal of the Wai Ohiao Pu] 


[Inclosure 2] 

Sis Excellency Liang SMh^yi to Minister Beinsch 

Peking, April 5, 1916, 

Excellency : I have the honor to inform you that the purpose to which the 
short term loan now to be issued by the firm of Messrs. Lee, Higginson & Com- 
pany, American fiscal agents of the Chinese Government, is to be devoted is 
as follows: 

Advances to the Provinces for industrial developments, municipal im- 
provements, and education: all under the budget for 1916. 

Liang Shih-ti 


File No, 893.61/1 670 

The American Qrouf to the Secretary of State 

New York, July 1916. 

Deak. Sir : At a meeting of the American Group this afternoon 
earnest consideration was given to the request which you made 
through our representative, who called upon you yesterday in re- 
sponse to your su^estion, that the American Group at once loan 
or advance to the Chinese Government, to relieve their present ad- 
ministrative necessities, the sum of $4,000,000 or $5,000,000. 

Because of our strong desire that our position should be clearly 
understood, we are takmg the liberty of rehearsing briefly the cir- 
cumstances attending our entrance into the field of Chinese business, 
as well as those whidi attended our withdrawal ; it is, of course, true 
that all these matters are of record in your Department, but, never- 
theless, it may not be inappropriate to refer to them again at this 
time in connection with the particular proposal now under discus- 
sion. 

The American Group (consisting of our respective houses and in- 
stitutions) was formed at the direct instance of the United States 
Government during the Taft administration. At that time (in 
1909) British, French and German banking groups had practically 
completed and had initialed a loan agreement with the then Chinese 
Imperial Government desimed to provide funds for the construction 
of the so-called Hukuang Eailways.® Our Government, on its own 
initiative, suggested to the Chinese Government that the American 
Group be invited to participate in this Hukuang Railways loan. 


•For. Eel. 1912, pp. 87-88. 



CHINA 


135 


Finally, after direct telegraphic communication between President 
Taft and Prince Ching had been resorted to, it was arranged that 
American capital should have one-fourth participation in the financ- 
ing of the railways to be built under the Hukuang loan agreement. 
The American Group was then formed, at the request of our Govern- 
ment, to undertake this financing. 

After long and complicated negotiations, dealing largely with 
the question of the allocation of engineering rights on the various 
sections of the Railway among the several interested powers, final 
agreement with the Chinese Government signed by the four bank- 
ing groups was reached on May 20, 1911, and, on June 15, 1911, the 
first series of the Hukuang Railways loan was issued to the public, 
one-fourth of the total amount, the equivalent of £1,500,000, being 
issued in America and being taken in the first instance by American 
investors. The issue price of these bonds was 99^; they are now 
quoted in the market at a fraction over 72. Various other loans 
were discussed by the American Group with the Chinese Govern- 
ment, but none came to fruition tmtil finally, in 1912, just after the 
revolution in China, the new Chinese Government approached the 
four banking groups who had been signatories of the Hukuang loan 
with a request that they enter into an agreement with the Chinese 
Government to loan £60,000,000 for administrative and reorganiza- 
tion purposes. Very soon after this request was made, the four 
banking groups referred to were approached by Russian and Jap- 
anese bailing groups, who, with the support of their Government, 
suggested that they be included in a new six-power group to be 
organized for the express purpose of making the above referred to 
£60,000,000 reorganization loan. Such a new group was formed 
under an agreement dated June 18, 1912, the provisions of which 
were that the six members of the international group so fonned 
should consider themselves bound to each other not to do singly 
any administrative loan business in China until the entire £60,000,000 
of the reorganization loan had been issued, until a majority of the 
group should decide not to go further with the reorganization loan, 
or until a period of five years had elapsed, whichever should first 
happen. This mutual obligation which we entered into with the 
knowledge and approval of your Department was designed to pro- 
tect the Chinese Government from the onerous terms which their 
necessities might otherwise have exacted; only to this extent was 
the six-power agreement intended to limit or curtail Chinese borrow- 
ing facilities, and we believe that the provision preventing separate 
action of the bankers of any one power was considered by our Gov- 
ernment the provision best calculated to strengthen the hands of 
those governments like our own which were seeking an open door 
on' equal terms to all the powers. 

A total of £25,000,000 only was loaned by this Intematioipal 
Group, or has been loaned to date (the American Group, howeyer, 
were not signatories of the £26,000,000 loan agreement with China 
because of circumstances to which we shall refer later) and four 
years of time have elapsed. We consider, therefore, that this six- 
power agreement is binding upon aU its members until June 18, 1917, 
or until the remainder of the £60,000,000 reorganization loan shall 



136 


FOBJIIGIT EEI^TIOKS 


have been issued, unless a majority of the subscribers shall in the 
meantime decide not to proceed further with the business. 

The Department of State was kept fully advised of our negotia- 
tions both with respect to the Hukuang Railways and the reorgani- 
zation loan; all cables received or sent were submitted to the De- 
partment; advice of the Department was taken in all matters in 
which our group was concerned in any way involving the inter- 
national relations of the United States or in the remotest degree 
affecting the welfare of China; and no step was taken by the Ameri- 
can Group in any instance except with tlie approval of the depart- 
ment of State, secured in advance. Our representative in Peking 
participated actively in the negotiations for the £25,000,000 loan 
above referred to, initialed the agreement for this loan in its final 
and definitive form along with the representatives of the other five 
interested groups. 

After the agi’eement for the £25,000,000 loan had been initialed, 
but before it was finally signed, the administration in the United 
States changed, and shortly thereafter there was issued to the public 
press by President Wilson his statement of March 19, 1913, in which 
he made clear that he was not in accord with the fundamental policy 
of the international group as organized.^® Promptly upon the appear- 
ance of this statement in the public press, we notified the other par- 
ties to the six-power agreement, our colleagues, and the Chinese 
Government that under the circumstances we felt compelled to with- 
draw from all further negotiations in connection with the £25,000,000 
loan. After our withdrawal^ the participation of the American 
Group in the loan was taken up among the other five banking groups 
who had initialed the loan agreement, the loan agreement was 
promptly completed, and the loan was issued in the foreign markets. 
One of the securities specifically assigned to this £25,000,000 loan was 
the Salt Gabelle, the administration of which was reorganized under 
a plan advised and proposed by the lending bankers and approved 
not only by the Chinese Government but by our own State Depart- 
ment and by the other Governments interested. 

At once, after withdrawing from this £25,000,000 loan, we closed 
our offices in China, sold our property there, and withdrew our 
representative. Since our withdi-awal the Chinese Government has 
negotiated loans with others in this country, and, indeed, established 
a fiscal agency here. While, by reason of our part in issuing the 
Hukuang Loan we felt that we could not completed dissolve the 
American Group, divesting ourselves of all interest in Chinese affairs, 
nevertheless, we expected not to undertake any new Chinese business ; 
the work had been burdensome because of the obligations incident to 
its international character and because of the frequent conferences in 
Europe which we were called upon to attend at short notice and with- 
out tegard to our engagements and responsibilities at the time at 
home. 

As we have pointed out, we have considered that we, like the other 
members of the six-power group which we entered into with the ap- 
proval of our Government, are still bound by our mutual obligations 
under the agreement of June 18, 1912, above referred to. The pro- 
visions of this agreement are not entirely clear, but we believe that 


« For. Bdl. 1913, p, 170. 



CHIITA 


137 


we cannot conclude singly any administrative loan to China unless it 
can be shown to be a loan which is not in the scope of the reorganiza- 
tion loan which was the object of the six-power agreement, and unless 
its purposes are not the purposes contemplated and mentioned in the 
£25,000,000 loan agreement signed by the banking groups of the other 
five powers; in the case of an administrative loan which could be 
shown not to be within the scope of the reorganization loan or the 
purposes contemplated in the £25,000,000 loan agreement, we conceive 
that we are permitted by our mutual arrangements with the other 
banking groups to make such a loan, but only with the understanding 
that the covering loan agreement shall provide that participation is 
open to all the other five powers interested in the six-power agree- 
ment, and that we must offer such participation to them either at the 
time of making the loan or subsequently. 

You did not state to us in the interview which our representative* 
had with you yesterday for what specific purpose the present loan of 
$4,000,000 or $5,000,000 is intended, or whether it is contemplated 
by China that it will be taken up and repaid from a larger adminis- 
trative loan to be negotiated and made later. In our opinion, the loan 
now requested would be unavailing unless followed by a larger re- 
organization loan which would aid China to rehabilitate her financial 
position. If such a larger loan were to be undertaken by the niembers 
of the six-power consortium, the American Group would be called 
to consider taking our share of it, but we realize that certainly weeks 
and perhaps months must elapse in the present conditions of the 
world’s finances before any proposition of the kind could be seriously 
'developed by the foreign banking groups. If, on the other hand, 
the present loan or advance of $4,000,000 or $5,000,000 is to be con- 
sidered as a separate venture, without any definite plan looking 
toward the rehabilitation of the finances of China, it would become 
necessary to know just what specific security the Chinese Government 
is prepared to offer, how and for whose benefit such security is to 
be administered, by whom it would be collected in case of default, and 
various other details which have not yet been made clear to us. 

As your Department was informed, we, some weeks ago, started 
negotiations with other interests in New York having offices in 
Peking to take our position in the Hukuang contract, which, if ac- 
cepted, would have enabled us to dissolve the Group. For your in- 
formation, it was not until today that we felt ourselves in a position 
to consider that the interests with whom we were negotiatmg had 
definitely decided not to consummate the negotiations. We now re- 
^ectfully suggest that, if the present designated fiscal agent of the 
Chinese Government in this country or if any other American 
bankers desire to undertake the loan or advance to the Chinese Gov- 
ernment now suggested, we shall be very glad to place at their dis- 
posal aU the data and information with respect to the Chinese busi- 
ness which we have at hand. 

However, if it is the desire of our Government that the American 
Group undertake negotiations with the Chinese Government with 
reject to this $4,000,000 or $5,000,000 loan now desired, we shajU, 
pf course, be prepared to do so. We should expect the Chinese Gov- 
ernment to offer a loan of, such a character, not pnly as to yield but 
as to security and metixod of administration of the security, that we 

j i , ' ! , , , , „ i i , . ■* ' : ' { . 



138 


FOREIGN RELATIONS 


would be justified in offering it to American investors. We think it 
fair to say that in view of our present commitments to the European 
groups as indicated above, the present condition of the world’s 
money markets, and the uncertain economic and political situation 
in China itself, we are not hopeful of a favorable outcome of such 
negotiations. 

We are [etc.] 

J. P. Morgan & Co. 

Kuhn, Loeb & Co. 

First National Bank, 

(by Charles D. Norton, Viee-Pres.) 

The National City Bank of N.Y., 
(by J. H. Perkins, Vice-Pres,) 


* File No. 803.61/1707 

Minister Beinsch to the Secretary of State 

[Telegram] 

American Legation, 
Peking^ September 15^ 1916^ 7 p. m. 

Minister of Finance states that he has authorized Minister Koo to 
negotiate with western bankers and hopes that the Department will 
take a favorable attitude toward eventual loan. 

Eeinsch 

Pile No. 893.61/1707 

The Secretary of State to the Continental and Commercial Trust 

and Savings Bank 

Department of State, 
'Washington^ November 16^ 1916. 

Gentlemen: I have read the contract between yourselves and 
the Eepublic of China with reference to a loan of five million dollars 
for a period of three years [printed below], and I have to say in 
reply to your oral request for a statement of the policy of this De- 
partment respecting such loans that the Department or State is al- 
ways gratified to see the Eepublic of China receive financial assist- 
ance from the citizens of the United States and that it is the policy 
of the Department now as in the past to give all proper diplomatic 
support and protection to the legitimate enterprises abroad of 
American citizens, 

I am [etc.] 

Egbert Lansing 


Agreement hetioeen the Government of OMna and the Continental md Comr 
mercial Trust and Savings Bank for a loan of five milUon Dollars gold 

[Left at the Department by the Continental and Commercial Trust and Savings Bank 

November 16, 1916.] 

This agreement made in tiie City of Washington, District of Oolnmbla, TTnited 
States of America, this day of November 1916 by and between the Gov- 

ernment of the Republic of China (hereinafter caUed ‘^Chinese Government*'), 
the first party hereto, represented by his Excellency, Doctor V. K. WelMn^n 
Koo, Envoy Extraordinary and Minister Plenipotentiary of the Republic of 
China to the United States of America, acting in the name and on behalf of the 



cmmA 


139 


Minister of Finance of the Republic of China by special authorization, and Con- 
tinental and Commercial Trust and Savings Bank, of Chicago, Illinois, United 
States of America, (hereinafter called “Trust Bank ”), the second party hereto, 

Witnesseth; 

Whereas, the Chinese Government desires to borrow the sum of five million 
dollars ($5,000,000.00) in gold coin of the United States of America of the 
present standard of weight and fineness, and may hereafter determine to bor- 
row in the United States of America an additional sum or sums aggregating 
twenty-five million dollars ($25,000,000) in like gold coin, and desires the Trust 
Bank to procure the loan to the Chinese Government of said five million dol- 
lars ($5,000,000), and the Trust Bank is willing to agree to procure for the 
Chinese Government said loan to it of said five million dollars ($5,000,000) all 
upon the terms and conditions hereinafter set forth, 

Now, therefore, it is hereby agreed as follows: 

Article First . — ^The Chinese Government agrees to borrow and the Trust Bank 
agrees to procure for the Chinese Government said sum of five million dollars 
($5,000,000) as hereinafter provided. The Chinese Government hereby declares 
that said loan is needed by the Chinese Government for industrial purposes 
including the internal development of China, the strengthening of the reserves 
of the Bank of China and the Bank of Communications (both of which are 
official banks) and other similar purposes. 

Article Second . — Said five million dollars ($5,000,000) loan and the Treasury 
notes hereinafter provided for are hereby constituted a direct liability and obli- 
gation of the Chinese Government which hereby pledges its good faith and 
credit for the full and punctual payment of the total principal of and interest 
on said loan and for the full and punctual payment of all of said Treasury notes 
in accordance with their terms, and for the performance of all of the under- 
takings on the part of the Chinese Government herein agreed to be performed. 

(a) Said five million dollar ($5,000,000) loan shall be evidenced by the 
Treasury notes of the Chinese Government which Treasury notes shall be 
designated and known as “Republic of China Six Per Cent Three-Year Secured 
Gold liOan Treasury Notes of 1916,” and shall be signed in the name of the 
Chinese Government by his Excellency Doctor V. K. Wellington Koo, Envoy 
Extraordinary and Minister Plenipotentiary of the Republic of China to the 
United States of America, and shall bear the official seal of the Chinese Lega- 
tion at Washington, D. C., and shall be authenticated by the Trust Bank. 
Said Treasury notes shall be dated November 1, 1916, and shall be payable 
November 1, 1919. They shall be paid by the Chinese Government, both princi- 
pal and interest, in gold coin of the United States of America of the present 
standard of weight and fineness. They shall be in coupon form and be 
r^sterable as to principal only. They shall be in the denomination of one 
thousand dollars ($1,000) each and shall bear interest at the rate of six per 
cent (6%) per annum from and after their date, payable semi-annually on 
May 1st and November 1st in each year, which interest shall be evidenced by 
coupons attached to said Treasury notes. Said Treasury notes and the coupons 
thereto attached shall be payable at the office of the Trust Bank In Chicago, 
ELlinois, and shall be substantially in the form hereto attached. 

At the request of the Trust Bank the Chinese Government will issue regis- 
tered notes without coupons in the denomination of one thousand dollars 
($1,000) or any multiple thereof. If registered notes without coupons shall 
be issued, they shall be interchangeable with any other notes of said issue 
under such plan as may be necessary or desirable to conform to the rales of 
any stock exchange. 

The whole or any part of said Treasury notes outstanding at the time, shall 
before their maturity be subject at the option of the Chinese Government to 
redemption upon any interest date at par, plus accrued Interest and plus one 
per cent (1%) premium if redeemed on or before November 1, 1917, and one- 
half per cent (%%) premium if redeemed any time thereafter. At least thirty 
(30) days’ prior notice of the exercise of such option to redeem stating the 
amount of said Treasury notes elected to be redeemed, shall be given to- the 
Trust Bank by the Chinese Minister located at Washington, D. 0. A notice 
of the exercise of such option to redeem shall be published by the Trust Bank 
at least once a week for four (4) successive weeks in a newspaper published 
in the English language in said City of Chicago and in a newspaper published 
in the same language in the City of New York, State of New York, United 
States of America. 



140 


FOBJEIGK EEIATIOUS 


If the Chinese Government elects to redeem less than the whole of said 
Treasury notes outstanding at the time, those to be so redeemed shall be de- 
termined by the Trust Bank by lot and in that event said published notice 
shall state the numbers of the Treasury notes so drawn for redemption. In 
case of the election by the Chinese Government to redeem the whole or any 
part of said Treasury notes, the Chinese Government will before the date of 
the first publication of said notice of redemption, deposit with the Trust Bank 
the funds necessary to effect such redemption. 

The Trust Bank shall promptly after such redemption send a written report 
to the Chinese Minister at Washington, D. C., stating the numbers of the Treas- 
ury notes drawn and the numbers of the Treasury notes redeemed. Treasury 
notes so drawn for redemption will cease to bear interest on and after the 
date appointed for their redemption, to be stated in the aforesaid published 
notice of redemption, notwithstanding anything stated to the contrary in said 
Treasury notes or coupons pertaining thereto. All said Treasury notes shall 
be canceled by the Trust Bank as soon as they are redeemed and shall be 
promptly delivered to the Chinese Minister at Washington, D. C. 

(b) At least ten (10) days before any installment of interest on said 
Treasury notes shall become due, the Chinese Government will deposit with 
the Trust Bank a sum sufiicient to pay said interest in full; and at least ten 
(10) days before the date of the maturity of said Treasury notes the Chinese 
Government will deposit with the Trust Bank a sum sufiicient to pay at such 
maturity the principal of and interest on all of said Treasury notes then out- 
standing. 

(c) Until definitive engraved notes are ready, one temporary note will be 
issued by the Chinese Government, either typewritten or printed, in the de- 
nomination of five million ($5,000,000) dollars. Such temporary note shall 
have the same force and effect as the definitive engraved notes until ex- 
changed for the latter. Said temporary note shall he substantially in the form 
hereto attached. Tire Chinese Government will cause definitive engraved notes 
in form satisfactory to the Trust Bank to be forthwith prepared and to be de- 
livered by the Chinese Government to the Trust Bank to be by it exchanged 
for said temporary note. 

(d) Provision may be made by the Trust Bank after consulting the Chinese 
Minister at Washington, D. 0., for listing said Treasury notes on any one or 
more stock exchanges in the United States of America. 

Article Third . — Said entire loan of five million dollars ($5,000,000) Is hereby 
secured in respect to both principal and interest, by a direct charge upon the 
entire revenues derived and to be derived by the Chinese Government from 
the Tobacco and Wine Public Sales Tax. Said security is hereby declared by 
the Chinese Government to be free from any other loan, pledge, lien, charge 
or mortgage whatsoever. Said five million dollar ($5,000,000) loan shall have 
priority both as regard? principal and interest, over any future loan, pledge^ 
hen, charge or mortgage whatsoever charged upon the above mentioned reve- 
nues. So long as said five million dollar ($5,000,000) loan or any part thereof, 
principal or interest, shall be unpaid, no loan, pledge, lion, charge, or mortgage 
shall be made or created which shall take precedence of or be on an equality 
with said five million dollar ($5,000,000) loan or which shall in any manner 
lessen or impair its security on or over the said revenues so far as said reve- 
nues shall be required for the service of said five milliozi dollar ($5,000,000) 
loan ; and any future loan, pledge, lien, charge or mortgage whatsoever charged 
on said revenues or any part thereof shall be expressly made subject to said 
five million dollar ($5,000,000) loan, both principal and interest The Chinese 
Governments expressly declares in its budget for 1910 promulgated by the presi- 
dential mandate on January 1, 1916, that the receipts from said Tobacco and 
Wine Public Sales Tax will net the Chinese Government during each of the 
years that all or any part of said five million dollar ($5,000,000) loan, both 
principal and interest, is unpaid, a sum equivalent to at least five juillion 
dollars ($6,000,000) in gold coin of the United States of America of the pres- 
ent standard of weight and fineness. 

The Chinese Government will promptly apply towards the payment of stUd 
Treasury notes, both principal and interest, so much of said pledged revenues 
as will be adequate and sufiicient to fully protect and pay all said Treasury 
notes and all unpaid accrued and accruing Interest thereon. If, during any 
or each of the years that aU or any part of said five million dollar ($6,000,000) 
loan, both principal and Interest, is unpaid, the receipts from said Tobacco 



GHXNA 


141 


and Wine Public Sales Tax should by any reason or circumstance net the 
Chinese Government a sum not sufficient to meet the service of said five mil- 
lion dollar ($5,000,000) loan, both principal and interest, the Chinese Govern- 
ment will forthwith make good such deficit from other sources of its revenue. 

Article Fourth . — ^The Trust Bank shall sell or cause to be underwritten or 
sold or disposed of within five (6) days from the date of this contract, said 
total issue of Treasury notes, and the Trust Bank, if it so desires, may associ- 
ate with itself as principals or otherwise in this undertaking, other banks, 
trust companies, firms and individuals. The Trust Bank may itself be an 
underwriter or purchaser of any part of said Treasury notes. 

Said Treasury notes may be offered by the Trust Bank individually or with 
one or more associates for public description, and if offered for public sub- 
scription, shall be offered at a price to the public of not less than ninety-seven 
(97%) of the par value of said Treasury notes plus accrued interest. The 
Trust Bank may, however, fix a lower price at which said Treasury notes may 
be privately offered by it for sale, subject, however, to the provisions of Article 
Sixth hereof. The Trust Bank may issue interim receipts to the purchasers 
of said Treasury notes. 

All expenses In connection with the printing, engraving and execution of 
said Treasury notes and interim receipts shall be paid by the Chinese Govern- 
ment, but all expenses in connection with the advertising and sale of said 
Treasury notes shall be ’paid by the Trust Bank. 

If said Treasury notes, or any portion thereof, are subscribed for by the pub- 
lic at the time of their original offer to the public, at a price in excess of 
ninety-seven per cent (97%) of their par value plus accrued interest, then such 
excess, when collected or received by the Trust Bank, shall be divided, one-half 
to the Chinese Government, and the other half to the Trust Bank. 

The Trust Bank is granted the power to determine the manner and method to 
be pursued in the underwriting, and in the sale (whether private or public) 
and in the offering and disposition of said Treasury notes. 

All details necessary for the prospectus of said five million dollar ($5,000,- 
000) loan shall be prepared by the Trust Bank in consultation with the Chinese 
Minister at Washington, D. 0., who wiE co-operate with the Trust Bank in any 
matters requiring conjoint action and will sign, by way of approval, if re- 
quested by the Trust Bank, the said prospectus. 

Article Fifth . — ^AU of said Treasury notes and coupons and all payments 
made or to be made thereon, or on any of them, and all payments made or to 
be made, disbursed, distributed or received on account of or in connection with 
all or any part of said five million doEar ($5,000,000) loan or on account of or 
in connection with all or any part of the interest thereon, shall in time of war 
as well as in time of peace be always exempt from any and aE taxes, imposi- 
tions, Eens or charges of any and every kind now or that may hereafter be es- 
tabEshed or levied by the Chinese Government or any province, division, or 
branch thereof, or that may be attempted to be established or levied by any 
province, division or branch thereof. 

Article Sixth . — ^The total of said five million doEar ($5,000,000) loan shall 
net the Chinese Government ninety-one doEars ($91) for every one hundred 
doEars ($100) thereof in gold coin as aforesaid, plus accrued interest from 
November 1, 1916, to the date that the Chinese Government is credited by the 
Trust Bank with the sum hereinafter in this paragraph spe<?ified. Amy and 
aE sum or sums of money paid to or received or realized by the Trust Bank on 
or from the sale, underrating or other disposition of aE or any of said 
Treasury notes above or in excess of said ninety-one dollars ($91) for every one 
hundred dollars ($100) of said five million doEar ($5,000,000) loan shall, ex- 
cept as is otherwise in Article Fourth hereof provided, belong absolutely to 
the Trust Bank, and shaE constitute and be the consideration and compensation 
which the Trust Bank shaE be entitled to and is to receive for Its services 
rendered and to be rendered hereunder. 

Upon the execution and delivery of this contract and the execution and de- 
Every by the Chinese Minister to the Trust Bank of said temporary note, and 
within said five (5) days from the date of this contract, the Trust Bank wEl, 
out of taie proceeds of said underwriting, sale and disposition by It of said 
Treasury notes, place to the credit of the Chinese Government In the Trust 
Bank a total net sum calculated on the basis aforesaid, of four miEion five 
hundred and fifty thousand doEars ($4,550,000) in gold coin aforesaid plus 
the interest accrued on said Treasury notes from November 1, 1916. Said 
csedlt may be drawn upon from time to time by orders or checks of the Qiinese 



142 


FOREIGN RELATIONS 


Government signed by its Miziister at WasMngton, D. 0., until and unless other- 
wise instructed in writing by the Chinese Government. Upon all of said 
moneys remaining on deposit with the Trust Bank interest will be allowed at 
the rate of two per cent (2%) per annum. 

Article Seventh , — In the event of any of said Treasury notes or any of 
said coupons pertaining thereto, being destroyed, lost or stolen, the Trust 
Bank is hereby authorized to notify the Chinese Minister at Washington, D, C., 
thereof, who will authorize the Trust Bank to insert an advertisement in one 
or more newspapers published respectively at the time in the Cities of Chi- 
cago and New York, stating that the payment of such note or notes or coupon 
or coupons has been stopped, and to take such other steps as may appear 
advisable to the Trust Bank according to the laws or customs in the United 
States of America. 

Should any such Treasury note or notes or coupon or coupons be destroyed, 
lost or stolen, and not be recovered after a lapse of time to be fixed by the 
Trust Bank, the Chinese Minister at Washington, D. 0. will execute a dupli- 
cate note or notes or coupon or coupons for a I’ke amount and deliver the 
same to the Trust Bank to be by it delivered to the owner or owners of such 
destroyed, lost, or stolen note, notes, coupon or coupons. The Trust Bank 
shall require from such owner or owners proof and indemnity satisfactory to 
the Chinese Government or to the Trust Bank. 

Article Bighth , — ^In reimbursement of its compensation and expenses con- 
nected with the distribution by the Trust Bank of the moneys to be received 
by the Trust Bank from the Chinese Government with which to pay the 
interest on said Treasury notes and the principal thereof, the Trust Bank 
shall be paid by the Chinese Government a commission of one-half (%%) per 
cent, of the moneys received by the Trust Bank to pay said interest and 
a commission of one-quarter (%%) per cent, of the moneys received by the 
Trust Bank to pay said principal. 

Article Ninth , — In the event of the Chinese Government hereafter deter- 
mining to borrow in the United States of America an additional sum or suras 
up to twenty-five million dollars ($25,000,000) gold of the standard aforesaid, 
the Chinese Government will grant the Trust Bank the first option to deter- 
mine whether it will agree to procure such additional loan or loans for the 
Chinese Government at such times and in such installments and on such 
terms as may be hereafter mutually agreed upon. Such option shall be 
valid for and during a period of sixty (60) days from the day on which 
written notice is given to the Trust Bank by the Chinese Government of 
-its desire to obtain such additional loan or loans. If the Trust Bank fails 
to exercise such option during the time covered by said notice, the option 
shall become null and void and the Chinese Government will be at liberty to 
borrow said additional sum or sums from any other bank or group of banks. 

Article Tenth , — On behalf of the Chinese Government, the Chinese Minister, 
his Bxc^lency Doctor V. K, Wellington Koo, who has signed this contract, 
agrees that the making of said loan of five million dollars ($5,000,000) and 
the issue of said Treasury notes and coupons and the execution and de- 
livery of this contract are each and all entered into and duly authorized 
by the Chinese Government and are each and all in accordance with the 
Constitution and laws of the Republic of China, and . that there is no treaty, 
convention, obligation or agreement of any kind to the contrary, and that 
the Chinese Government will, upon the execution and delivery hereof, deliver 
to the Trust Bank a cablegram (or copy thereof) from the Minister of 
Finance of the Chinese Government, and promptly thereafter a confirmatory 
document from said Minister of Finance, in substance stating that the mak- 
ing of said five million dollar ($5,060,000) loan and the issue of said Treasury 
notes and coupons and the execution and delivery of this contract are each 
and all entered into and duly authorized by the Chinese Government and 
are each and all in accordance with the Constitution and laws of the Re- 
public of China, and in no way contrary to any treaty, convention, obligation 
or agreement of any kind. 

; Article FJeventli,— -This contract is signed on behalf of the Chinese (Sorern- 
ment by the Chinese Minister at Washington under authority of a cablegram 

from the Minister of Finance of the Republic of China dated the 

which has be^ officially communicated to the Minister in Peking, China, of 
the United States of America. 

Three original copies of this agreement have been executed - in English, two 
copies to be retained by the Chinese Government, and one copy by the Bank. 



CHIJTA 


143 


In the event of any doubt arising in regard to the interpretation of this agree- 
ment, the English text shall rule. 

In witness whereof, his Exoelleney Doctor Y. K. Wellington Koo, the duly 
authorized and accredited Envoy Extraordinary and Minister Plenipotentiary 
of the Republic of China, to the United States of America, acting in the name 
of the Government of the Republic of China and on behalf of the Minister of 
Finance of the Republic of China, under special authorization as above, has 
hereunto signed his name and caused the seal of the Chinese Legation at 
Washington, D. C., to be afilxed hereto, and said the Continental and Commer- 
cial Trust and Savings Bank of Chicago, Illinois, has caused this instrument 
to be duly signed and delivered for and in its name and on its behalf by 

^ its President, at the place and on the date first above 

written. 


Continental and Commercial Trust and Savings 
Bank of Chicago, Illinois, 

By 


Its- 


PUeNo. 893.61/1711 

Minister Reinsch to the Secretary of State 

[Telegram] 

^ American* Legation, 

Peking^ November 05, 1916. 

The American loan of $5,000,000 has been ratified by both Houses 
of Parliament by votes approaching unanimity. 

Reinsch 


Pile No. 893.51/1735 

Minister Reinsch to the Secretary of State 

[Etctract] 

No. 1284 American Legatton, 

PeMng^ November 29, 1916. 

Sir: As reported in my telegram of November 25, the loan of 
G$5,000,000, made by the Continental & Commercial Bank of Chicago, 
has been approved by both Houses of Parliament, by votes approach- 
ing unanimity. It is to be noted that this result was obtamed not- 
withstanding the fact that on nearly every point the present Parlia- 
ment is opposed to the Premier and his Cabinet. Its ready ap- 
proval of the American loan therefore indicates the great impor- 
tance and value which is attached by the nation as a whole tp Ameri- 
can financial assistance at this time. 

The French Chargd d’ Affaires, Count do Martel, called on me on 
the 24th instant, and stated that he desired me to know that the 
Banque Industrielle de Chine, a French institution with Cliinese ost, 
sociates, had a claim on the wine and tobacco taxes as security for 
loans. Under the same date (Noveipber 24) I received from qim ,a 
note in which, at my request, he had set forth the texts of the agree- 
ments in question ; a copy of this note is herewith enclosed.® , , , 

Under Annex II of ime Ching-Yu Railway Agreement of , Jaauaiy 
21, 1914, all tobacco taxes and imposts throughout China are , pledged 


•Not printed. 




144 


tOKBIGN RELATrOirS 


as security for advances made under the main contract. I am in- 
formed that the amount of the advances is about Francs 36,000,000. 
By Annex II to the so-called Pukow Harbor Improvement Loan of 
1914, the annex being dated March 2, 1914, the taxes on spirits col- 
lected in the provinces north of the Yangtze are pledged. 

Having at the time no official information concerning the char- 
acter of the security pledged in the Aunerican loan agreement, I 
could only state to Count de Martel that I would take notice of the 
facts brought to my attention and investigate the matter. Dr. Chen 
Chin-tao, the Minister of Finance, upon my inquiring, informed me 
that while the imposts and taxes on tobacco and spirits were pledged 
to the French bank, as stated, the security for the American loan 
was the revenue from Government sales of wines and tobacco. * * * 

The revenue from the Government sale of tobacco, so-called, is 
therefore distinguished in origin and in the method of collection 
from the imposts and taxes (there are taxes, additional taxes and 
license fees levied). The estimated revenue from the taxes and im- 
posts during the present year is Mexican $16,000,000; from the Gov- 
ernment sales revenue, Mexican $11,000,000. 

In a discussion of this matter with Dr. Chen, he admitted thaHt 
might be i)ossible to argue that the Government sales revenue, as 
now administered, was a tax under another name, but not materially 
differing from other taxes. Upon this admission I secured from 
him, as a matter of precaution, oral assurances to the effect that 
should the American bankers consider the security pledged to thorn 
inadequate, on account of the possible impinging of the French 
claim for securities on taxes and imposts, he would assign additional 
security. I stated to him that if the American bankers considered 
it necessary for their protection, an American expert might have to 
be appointed to assist in the systematization of the Government 
sales revenue. He cited to me the Eusso-Chinose Declaration of 
June 24, 1895, in Article IX [IVJ of which it is provided that 
should China grant to another foreign power rights connected with 
the control or administration of the revenues of China, such rights 
must be extended to the Russian Government. I stated to nim 
that in the case in question such rights would be asked merely for 
the protection of security already granted, if it were endangered by 
a specific obstacle. It was therefore not a grant by China, but a 
remedy to which, under everr consideration, the parties holding 
the security are entitled should they desire to avail themselves of it. 

When the Legation had been thus informed concerning the char- 
acter of the security pledged, I directed the First Secretary of Lega- 
tion to notify the Frendi ChargI d’Affaires, which he did in an 
interview. * * * 

As to the question of the security, there is no doubt of its suffi- 
ciency for the loan of G$6,000,000. It is, however, my opinion that' 
as q)ccific security it might not be adequate for the contemplated 
loan of G$25, 000,000 unless the scientific administration of the reve- 
nue be assured and the matter of the possible conflict of French 
claims be adjusted. 

T^e Minister of Finance has also received a protest from the 
Allied members of the Consortium against the American loan, as 



OHIKA 145 

in conflict with Article XVII of the Keorganization Loan Agree- 
ment of 1913^^ which provides: 

In the event of the Chinese Government desiring to issue further loans se- 
cured upon the revenues of the Salt Administration or to issue supplementary 
loans for purposes of the nature of those specified in Article II of this Agree- 
ment, the Chinese Government wiU give to the Banks the option of xmdertak- 
ing such loans. 

The Minister of Finance is taking the position that: 1st, an option 
to raise the loan having been offered to the Consortium in September, 
upon which they have been unable to act on account of the impos- 
sibility of cooperation between the different belligerent powers dur- 
ing the war, the Chinese Government has fulfilled its duties under 
the contract and may offer options for loans to other groups or in- 
stitutions; and 2nd5 particular loan concluded with the American 
bank does not come within the purview of Article XVII, because 
it is not related to any of the objects for which the Eeorganization 
Loan was made, but is, on the contrary, as the Minister of Finance 
states, intended to^ provide a fund for industrial development which 
will be temporarily deposited in the Government banks for the 
strengthening of their credit. 

It is my opinion that even as providing a bank guarantee fund, 
the American loan is entirely outside of the sphere of the Reor- 
ganization Loan of 1913. * * * 

I have [etc.] 

Paul S. Reinsch 


TOe No. 893.61/1715 

Minister Beinsch to the Secretary of State 

[Telegram] 

Ameeican Legation, 
Peking, December 2, 1916, 1 p. m. 

The Chinese Government apprehend that if insisted on the claim 
of the British, French, Eussian and Japanese group banks to the 
effect that they represent the five-power syndicate* together with 
their broad interpretation of Article 17 of the loan agreement so as 
to include administra,tiv& loans of whatever kind, threatens to de- 
stroy equal opportunity and reduce China to fiscal dependence on 
certain powers under the leadership of Japan. It considers verjr 
important the right of independent banks to do business not speci- 
fically preempted, and will appreciate the assistance of the American 
Government in safeguarding this. 

A rumor has been circulated, emanating from Japanese sources, to 
the effect that alleged strongly German character of the Continental 
Commercial Bank accoimts for making of the loan which is repre- 
sented as directed against the interests of allied powers. While this 
clumsy invention will not make much impression it indicates a possi- 
ble line of attack on independent American enterprise in China. 

Ebinsobc 


a For. Eel. 1913, pp. 180, 188, 190. 




146 

rae No. 893:51/1715 


FOKBIGN RELATIONS 


The Secretary of State to Minister Beinsch 

[Telegram] 

Department of State, 
Washington^ December 1916, 

Your telegram of December 2. You may say to the Chinese Gov- 
ernment that in the opinion of this Government there is nothing in 
the terms of the Chicago loan which conflicts with any agreements 
between China and foreign bankers. Opposition would seem to im- 
ply a claim on the part of some to greater privileges in China than 
enjoyed by Americans. 

This Department last summer gave every encouragement to par- 
ticipation by group banks to loan to China and met with nothing 
but rebuffs. 

Lansing 

File No. 893.51/1716 

The Secretary of State to Minister Beinsch 

[Telegram] 

Department op State, 

W asTvmgton, December 5, 1916. 

Department’s telegram December 4. You are authorized to take 
occasion to intimate to ;^our colleagues representing Governments of 
group bankers’ nationalities that any strained construction of exist- 
ing agreements between the Chinese Government and bankers, or 
any attempt to exclude our bankers from a fair participation in 
Clunese affairs, would meet with very decided resistance from this 
Government. 

Lansinq 

Pile No. 893.81/1729 

Mmister Beinsch to the Secretary of Stale 

[BSctract] 

No. 1295 American Legation, 

Peking^ December 8, 1916. 

Sir: In continuation of my despatch No. 1284 of the 29tb. ultimo, 
* * * I have the honor to forward herewith the following en- 
dosures : 

1. Memorandum by Professor W. W. Willoughby which was made, 
in substance, the basis of the letter of the Minister of Finance to the 
representatives of the banking Consortium, under date of Decem- 
ber 1. 

2. Substance of the reply of the representatives of the Consortium, 
under date of the 2d infant. 

3. Memorandum of the substance of the reply of the Minister of 
Finance, de^atched on December 6. 

4. Copy of the Legation’s note of ihe 7th instant to the Minister of 
Finance. 

I have [etc.] 


PAXUi S. Bexnsgh 



CHmA 


U1 


tlnelostcre 1] 

Memorandum used as the suhstamce of a letter from the Minister of Fkiance 
to the representatives of the Consortium 

I>BCE3.£BEE 1, 1916. 

Replying to your letter of inquiry of November — I have the honor to say 
that when, more than two months ago, the Chinese Government was attempting 
to make a loan coming within the scope of Article XVII of the Agreement of 
April 26, 1913, the loan was offered to the Consortium of Banks which is collec- 
tively a party to that agreement. This was in accordance with the option 
therein provided. In reply to this offer, the Chinese Government was in- 
formed that the five Banks, constituting the Consortium, were no longer able to 
act as a group, and that with one of the members of the group the other four 
members were unable or unwilling to communicate or cooperate. This confes- 
sion on the part of the group that it was not in a position to exercise the option 
thus offered to it, of course left the Chinese Government free to offer the loan in 
question to any parties that it might see fit. That is to say, it might offer it to 
any outside bank or banks, or to an individual bank or a group of banks from 
among those which constitute the Consortium under the Agreement of April 
26, 1916 [1913?]. 

As regards the loan recently obtained from the Chicago bank, I have the honor 
to say that it is a loan which does not come within the provisions of the Agree- 
ment of April 26, 1913, inasmuch as it is neither guaranteed by the i^evenues 
of the Salt Tax nor for purposes of a nature similar to those enumerated in 
Article II of the said Agreement. 

This loan is an industrial one, and, incidentally, for the aid of the Bank of 
China, in which Bank its proceeds are to be deposited in order that its credit 
may be strengthened. 


[Inclosure 2] 

Sudstance of the reply of the representatives of the Consortium to the Minis- 
ter of Finance 


Peking, Decenther 6, 1916. 

The Bankers can not agi*ee with the views expressed by the Minister of Fin- 
ance that the British, French, Russian, and Japanese Banks have lost tueir 
rights under Article 17 of the Reorganization Agreement through their inability 
to cooperate with the German Group. This contention is supported by the Min- 
ister’s letter of November 17, in which he confirmed application for a loan of 
£10,000,000., although he had been informed that the five banking groups could 
not cooperate. 

As to the American Loan the Bankers cannot admit that a loan to be 
made for the strengthening the credit of the Bank of China is an individual 
loan and therefore not under the provisions of the Reorganization Loan Agree- 
ment They therefore cannot modify their attitude towards that loan. 


[Inclosure 3] > 

Memorandum of the sujfstwnoe of the reply of the Minister of Fmanoe 

The Minister of Finance states that In his letter of November 17, he did 
not confirm the application of a loan for £10,000,000 to the four banks, but 
requested to be informed specifically* as to the instructions which had bee^ 
received by them with respect to the action on the option offered in Seplemher 
to the Consortium as a whole. With respect to the Afneriean G$5,tl00,666 
Loan, he said in substance as follows : ' ; : . ^ 

It is ^necessary for us to point out that the Chinese Goyeniment cahnot hbld itself 
hound beyond the explicit language of the loan agreement, and that a. loan for streng^ 
ening the currency reserve of banks Is In no way comprised In that language. Moreovebr; 
the ultimate purpose to whid; the proceeds of this particular loan sre te be devoted is 
industrial In nature. . , 



148 


FOBEioiir BEiiAnona 


[Inclosnre 4] 

Minister ReinscJi to the Minister of Finance 

American Legation, 
Peking, Decemler 7, 1916. 

ExcErxENCT : As you confidentially inform me that the British, French, Rus- 
sian, and Japanese banMng groups had entered a protest against the American 
loan, just concluded, on the ground that it conflicted with Article XVII of 
the Reorganization Loan Agreement, I reported this matter to my Govern- 
ment and I am now informed that in the opinion of the American Government 
the terms of the Continental and Commercial Bank loan in no way conflict 
with any agreements between foreign bankers and the Chinese Government. 
I may also state that opposition to this American loan would appear to imply 
that there is a claim on the part of others to greater privileges in China than 
are enjoyed by Americans; and also that such a claim, founded on an ex- 
tensive interpretation of Article XVII of the Reorganization Loan, cannot be 
admitted. 

Your excellency has also given me specific information to the effect that 
the proceeds of the American loan are to be used for the purpose of strengthen- 
ing the credit of the two national banks of China, and of creating a fund for 
advancing the industrial development of the Republic. I note this assurance 
with satisfaction and it is highly important that the proceeds should entirely 
be applied to the constructive and productive purposes indicated, because 
should they be expended for purely political uses unconnected with productive 
industrial enterprises, the making of all further loans in America would be 
seriously discouraged. Without any desire to interfere at this time with the 
disposal to be made of the loan, I feel that I owe you the above indication of 
the danger of any diversion of the funds from the purposes indicated. 

I avail [etc.] 

Paul S. Reinsch 


raeNo. 89S-61/1T34 

Minister Reinsch to the Secretary of State 

ITo. 1311 American Legation, 

Peking.^ December 18^ 1916. 

Sir : I have the honor to report that, in compliance with the De- 
partment’s telegraphic instructions of December 5, relating to the 
American loan to China, I have called upon the Ministers of Russia 
and Japan, and the Charges d’ Affaires of Great Britain and France. 

In each case I stated that the American Government had observed 
the political and financial situation in China and that it was not 
desirous of having the Chinese Government reduced to a situation 
where all kinds of desperate financial expedients would appear nec- 
essary to those in charge of China’s affairs. Such a situation could 
benefit no one. 

I further stated that in order to protect the right of American 
bankers to a fair participation in Chinese financial enterprise, the 
Am^ican Government would take a very decided stand against any 
strained construction of existing agreements made by the Chinese 
Government in matters of finance; particularly by expanding the 
scope of such agreements beyond the strict import of the language 
therein used. More particularly, I added that the American Gov- 
ernment considered that the terms of the loan just negotiated with 
the Continental & Commercial Bank of Chicago did not conflict in 
any way with existing agreements.. 

On the basis of previous instructions and intimations which I have 
received from the Department, I felt justified in stating further 
that I did not believe that the American Government would counts- 



cxsmx 


149 


nance any loans not made upon sound principles with respect to the 
security thereof and the use of the funds provided; and that it did 
not favor loans carrying concessions or secret privileges. 

In every instance, the respective representative with whom I was 
talking proceeded to ask me what would be the attitude of the Amer- 
ican Government towards a reentry of the American Group into 
cooperation with the Consortium. I reviewed the history of the at- 
titude of the present administration on this question, and stated that 
the American Government could not do anything which would imply 
sanction to a monopolistic or esclusive domination of Chinese finance 
in general. If the cooperation of the American Group could be ar- 
ranged, considering all the circumstances of the war and the limita- 
tion !above set forth, I believed that the American Government would 
not withhold its approval. In every case the representative with 
whom I was talking at the time expressed himself as greatly desirous 
that Americans should participate in the business of the Consortium. 
The Japanese Minister stated to- me that, in his view, it would be 
better that the arrangements for the loan should be completed, in 
order to avoid delay and troublesome questions, and that then the 
American Group should be invited to participate. The French 
Charge dAffaires, on the other hand, stated that it was the prefer- 
ence of his Government and that of Great Britain that the Amer- 


ican financiers should be consulted from the beginning of the nego- 
tiations; but that he was not informed as to the views of Kussia and 
J apan. 

As the German Minister is at present sick, I have not had an op- 
portunity of bringing to his attention the views of the American 
Government. He has, however, on other occasions, expressed to me 
his feeling that it is proper and desirable for American bankers and 
capitalists to take a part in Chinese affairs, and he has also expressed 
the readiness of German interests to cooperate with Americans in 
specific enterprises or undertakings. 

In conclusion, I have the honor to report that during these con- 
versations with the representatives of the Powers mentioned, none of 
them stated any objection to the loan of G$5 ,000,000 made by the 
Chicago bank, nor to the policy of the American Government with 
respect to the free participation of the American banker's in Chinese 
finance, as explained to them. On the contrary, they appear to con- 
sider such participation of Americans as quite natural and unobjec- 
tionable, provided existing agreements are not interfered with; the 
British and French Charges d’Affaires were particularly friendly in 
their expressions concerning American enterprises in China. 

I nave [etc.] 


Paul S. Reinsoh 


EUe No. 893.51/1722 

Minister Reinsch to the Secretary of State 

[Telegram! 

A.MIERICAN' liBGATrON, 

December 1916^ 11 a. m. 

Your statement of the position of the American Government in 
the matter of loans was received in a friendly manner by the repre- 

106413*— i-Biaie — 15 



150 


KJEEIGN RBIiATIOKS 


sftntatives concerned wlio stated no objection to Chicago loan, but 
all expressed a desire for American cooperation in reorganization 
loan. Full report by mail. 

Eeinsoh 


BAlIiWAT CONCESSIOITS.— HtrETTAlTG RAILWAYS; DISCBIMXffA- 
TIOK AGAllTST AMERICAN MATERIAL. NANKING-NANCHAlira- 
PINGHSIANG CONCESSIOIT TO THE BRITISH AND CHINESE COR- 
PORATION. PIN-HEI CONCESSION TO THE BDSSO-ASIATIC BANK. 
PENGCHEN-NINGHSIA CONCESSION TO THE SIEMS-CAREY & 
COMPANY, LTD.; PROTEST OP RUSSIA, ATTITUDE OP THE 
UNITED STATES. 

BUe No. 893.77/1462 

Minister Reinsch to the Seeretary of State 

No. 519 American Legation, 

Peking, Janiiary 18, 1915. 

Sir: Referring to previous correspondence, on the subject of the 
supply of materials for the Hukuang Railways, I have the honor to 
submit herewith copies of confidential despatches ^Nos. 55 and 57)* 
addressed to the Legation by Mr. Arnold (th^ Consul General at 
Hankow), dated November 7 and 12, respectively, on the present 
status or the tenders for bridge material for the Canton-Hankow 
(British) section, under Indents 11, 12, and 31. 

From Mr. Arnold’s first despatch on this subject (No. 55), it 
appears that the Chief Engineer of the so-called British section, Mr. 
A. G. Cox, has acted in deliberate and acknowledged disregard of 
the resolutions on standardization adopted by the Conference of 
Chief Engineers, held at Hankow in May last, which were intended 
to formulate certain practical means of realizing the principle 6f 
impartial preference provided by the terms of the Hukuang Loan 
Agreement, and which were formally ratified by the Ministry of 
Communications as applicable to the supply of materials for the 
Hukuang Railways.^ Mr. Cox not only denied having received in- 
structions as to the applicability of those resolutions, but he also 
clamed that the phrase “ The most favorable bidders ” — a phrase 
which he himself had introduced at the conference in amendment 
of Mr. Randolph’s draft of Clause 7 of the resolutions concerning 
bridges, suj)portiag and carrying his amendment by arguments which 
are given m the minutes, of which copies are understood to have 
been forwarded to the Department by the Hankow Consulate 
General in Junoj-conferred upon him authority to reject any bids 
not complyii^ with specifications drawn by him in conformity with 
the engmeering practice of a particular market. By this quibble 
upon a phrase which he himself introduced into the resolutions with 
quite different explanations of its scope and purport, he would makA 
it optional with himself to exclude aU possibility of any but British 
competition for the supply of materials for the construction of the 
Canton-Hankow section. No new factor, but merely a confirmation 
of the attitude thus indicated, is added by his resentment of the 


•Not printed* 


[See note at end of mdosares to this deepatciu] 



CHINA 


151 


fact that the American Government has asserted an interest in the 
principles upon which contracts are to be awarded for the materials 
to be used in the construction of the line entrusted to him. It seems 
amply clear that, whatever the nature of his motives, Mr. Cox con- 
siders himself wholly independent of the provisions embodied in 
the Hukuang Loan Agreement, and either iraorant or disdainful of 
his obligation to administer his office as a chief engineer, under the 
direction of the Chinese authorities, as a trust for the four national 
groups signatory to the loan agreement. 

This attitude on his part is the immediate concrete obstacle to 
the possibility of impartial opportunity for the participation of 
American manufacturers. The issue is not settled, but merely post- 
poned, by the action of the Chinese authorities in setting aside 
the tenders hitherto issued and calling for new bids — not on the 
^ound that the principle of impartial preference had been nulli- 
fied by the refusal of the Chief Engineer to consider the bids of 
American manufacturers (which were in fact the lowest), but 
on the technical gi^ound of having decided in favor of a loading 
of Elfi instead of EJfS. It would seem as though Mr. Cox had put* 
himself to some trouble to impress upon Mr. Arnold the fact that 
he proposed under any circumstances to apply to the bi<k sub- 
mit^ in response to the new specifications the same discrimination 
against American products in the competition for the supply of 
practically all the bridge materials required for the portion of the 
line from Hankpw (Wuchang) to Changsha. 

The crux of the problem tnus presented is to fiind an effective 
means of inducing a modification of the position he has adopted. 
It would seem that the most direct method of enforcing upon him 
a realization of his responsibilities to the American Group (and to 
the interests which it represents) is through his Chinese employers. 
Attempts have heretofore been made to impress upon the interested 
Chinese authorities not only the obligations imposed upon them 
by the loan agreement, but also the economy of a standardization 
malring possible free competition, on all sections of the Hukuang 
Eailway, among the four national markets. Such representations 
have always received the academic assent of the Chinese officials 
concerned — of Chou Tze-chi and of Liang Tun-yen, as Ministers 
of Communications, and of Feng Tuan-ting and of Jeme Tien- 
yow, as Directors-General; but they have all (perhaps not un- 
naturally) evaded personal responsibility, pleaded the impractica- 
bility of opposing British interests supported by the Britidi Lega- 
tion, and emphasized the difficulty of overruling the technical judg- 
ment of the engineer entrusted with the work. Their simultaneous 
good disposition and unwillingness to meet an issue of principle 
are well illustrated by the reissue, with a new specification tor load- 
ing, of the bridge indents to which reference is made above. 

It ^ems beyond hope that the Chinesevauthorities can be induced 
to take any resolution on principle in this matter; and the one pos- 
sibility of effective action seems to be to lay before them a clearcut 
issue upon concrete and easily determipable facts concerning which 
there can be no wrangling or evasion. It has (ihepfore seemed to me 
advisable to supplement the note of Novemberj 12 last (of wMch 
a copy is enclosed herewith) j marking to the Minister of Commmaica- 



152 


FOEJBIGlSr RELATIONS 


tions certain suggestions for the pructical realization of the prin- 
ciple of impartid preference, with a further note requesting him 
to issue to the chief engineers of the several sections of the Hu- 
i^ang Kailways instruction definitely requiring them to administer 
their duties as trusts for the impartial benefit of the various na- 
tional interests involved, with particular reference to the inter- 
pretation of the Standardization Conference resolutions in such a 
manner as to accomplish the purpose of affording an actual equality 
of opportunity for tlie employment of the several national engineer- 
ing practices. In communicating this further note to the Minister 
ox dommunications, I propose to make clear to him by oral ex- 
planations that in the event of a failure of the Chief Engineer of 
the Canton-Hankow section to accord to the bids of .^erican 
manufacturers the consideration obviously intended by the resolu- 
tions of the Hankow Conference, the Government of the United 
States would reserve the right to demand (a) the cancellation of 
any award made by the Chief Engineer in disregard of our rights, 
and (b) the dismissal of Mr. Cox. By informal conversations with 
the British Legation and by_ such other means as seem expedient, 
1 shall furthermore make this attitude of the Legation known, in 
advance of the award of the contracts, in quarters in which an 
appreciation of the situation might tend to avert an issue on the 
question. 

1 am inclined to believe that the Chinese authorities would 
themselves welcome the definition of a clear issue wiiich might 
enable them to withstand the impositions of a subordinate who, 
with the backing of certain British influences, is seeking to exploit 
Chinese in behalf of British interests. Should they, however, fail 
to recognize the advantage accruing to them through such a clari- 
fication of the issue, and prove unwilling to meet their responsi- 
bilities, it seems to me advisable to force upon their consciousness 
a realization of the fact that neither interest nor obligation would 
require the American bankers to continue contributing funds for 
a line which, in defiance of the contract under which the money 
had been raised, might be carried through for the special profit 
of one of the four lending nations. 

I have [etc.] 

Paul S. Reinsoh 


[Inclosure 1] 

Minister Remsch to the Minister of Communications 

American Legation, 

Peking, ’November 12, WlJi, 

Exoeelenct: In connection with the discussions which have been going 
on during the past months with regard to the construction of the Huhuang 
Railways, I beg to give to your excellency every assurance that the American 
Group is not actuated by any desire to embarrass or delay the execution of 
this work, but that, on the contrary, its sole desire is to secure the establish- 
ment of such conditions as will make its efficient execution possible on the 
basis of business-like and economic principles favorable alike to your Govern- 
ment and to aU the Groups. 

WhHe recognizing the great importance of the section committed to th© 
American Engineer-in-Ohief, and the great value as an instrument of com- 
mercial dev^opment which this section have when completed, the 



COBOITA 


16 S 


American Group nevertheless fully approves of, and Is ready to cooperate 
with, the policy of concentrating the work primarily upon the British sec- 
tion so as to assure its completion at an early date, considering that the 
early establishment of through communication between Hankow and Canton 
is of great importance. The American Group, therefore, is always keeping 
in view the interest of the Chinese Government and of the Hukuang system as 
a whole. 

The American Group has learned with gratification that your excellency 
and the Director-General of the Hukuang system are determined to give full 
support by general instructions and in detail to the principles contained in 
the resolutions of the Conference of Engineers held at Hankow in May last; 
and it trusts that these principles which, on the basis of free discussion, 
represent a fair statement of that impartial preference which is guaranteed 
by the Loan Agreement itself will be enforced in the management of the 
individual sections. It would appear essential to such impartial preference 

1st: That the specifications upon which tenders are called for shall im- 
partially recognize the standard engineering practices of the four nations con- 
cerned, leaving the details of construction to be determined in accordance 
with the approved engineering practice of the nationality of the respective 
bidder : 

2d: That the provision that the most favorable bidders are to be awarded 
the contract shall be given its natural interpretation : i. e., that ordinarily the 
lowest bid is the most favorable unless specific valid reasons can be assigned 
for accepting a higher bid, and 

3d : That, as the present maximum specified for direct orders to be awarded 
without tenders for bids is so high as to make possible the awarding of 
most of the work without inviting tenders, it is suggested that the maximum 
now fixed at £5,000 should be reduced; that £1,000 as a maximum would 
be amply large for the purpose intended. 

If the resolutions of the May Conference are carried out by all parties in 
a loyal spirit, there is complete assurance that this important enterprise 
will proceed with efficiency, economy and due speed. 

I avail [etc.] 


Paui. S. Beiksch 


[Inelosure 2] 

Minister Reinsch to the Minister of Communications 

American Legation, 

Peking, January 18, 1915. 

Excellency : In a communication dated Kovember 12 last I had the honor 
to make to your excellency certain suggestions in reference to the practical 
realization of the principle of impartial preference, established by the Hukuang 
Loan Agreement, as among the markets of the four nations furnishing the 
funds for the construction of the Hukuang Railways. Among these suggestions 
were the following, in reference to the application of the resolutions on stand- 
ardization adopted by the Conference of Chief Engineers, held at Hankow in 
May last, and since formally ratified by your IVBnistry as applicable to the 
supply of materials for the Hukuang Railways : 

1st. That the specifications upon which tenders are called for shall im- 
partially recognize the standard engineering practices of the four nations con- 
cerned, leaving the details of construction to be determined *m accordance with 
the approved engineering practice of the nationality of the respective bidder ; 

2d: That the provision that the most favorable bidders are to be awarded 
the contract shall be given its natural interpretation: i. e., that ordinarily the 
lowest bid is the most favorable unless specific valid reasons can be assigned 
for accepting a higher bid. 

‘ I regret to inform you that it has come to my knowledge that in a conversa- 
tion with Mr. Jnlean H. Arnold (then American Consul General at Hankow), 
Mr. Cox, the Chief Engineer of the Oanton-Hankow section, stated in November 
last that he had received no instructions which would obligate him to observe 
the resolutions of the Standardization Conference, and that even if he were so 
Instructed he would consider himself warranted in rejecting any tender which 
did not precisely comply with his specifications, on the ground that such a 
tender would not be “ the most faVdrable ** wiihin the meaning of Clause 7 of the 



154 


POEEIGir ItEIiATTOHS 


resolutions concerning bridges. As I need scarcely point out to you, such a 
quibble upon the phrase “ the most favorable bidder a phrase which, it may 
be remembered, Mr. Cox had himself introduced into the resolutions with quite 
different explanations of its scope and purport — ^would defeat the whole object 
of the Standardization Conference by enabling any of the chief engineers to 
exclude the possibility of competition by any national market other than the 
one in accordance with whose engineering practice he might choose to draw 
his specifications. 

The discussions I have had with your excellency have convinced me that 
you share the view held by the American Government as to the trusts consti- 
tuted by the Hukuang Loan Agreement in fayor of the nationals of the four 
lending nations, and that you are fully conscious of the responsibility thus im- 
posed upon the competent Chinese authorities for the loyal and impartial ad- 
ministration of these trusts alike by the Chinese ofldcials and by the foreign 
engineers, and the agents and employees of the Chinese Government. I there- 
fore count upon your sympathetic reception of the further suggestions in this 
matter which I feel prompted to make in view of the attitude avowedly taken 
by one of the chief engineers to whom the duties and responsibilities of the 
Chinese Government, as trustee, have been delegated in so far as concerns the 
work of construction. I therefore venture to request that, in order to avoid 
any misconception as to the nature of their responsibilities, your Ministry 
should instruct the chief engineers of the several sections that they must regard 
themselves as administrators of trusts which impose upon them the obligation 
to assure to the four national markets that impartial preference, in the matter 
of the supply of materials, for which provision is made in the Loan Agreement. 

I would also request that in conveying these general instructions to the 
various chief engineers, you should also point out to them that the resolutions 
of the Standardization Conference are to be interpreted and applied in the 
light of that view of their responsibilities, and that, concretely, the phrase 
“ the most favorable bidder ” is to be considered as meaning the lowest bid- 
der, unless specific valid reasons, compatible with the principle of impartial 
preference, can be assigned for the acceptance of a higher hid. 

In.making these requests, I venture the opinion that a clear understanding of 
the nature of the responsibilities imposed upon the chief engineers, and an 
unequivocal interpretation of the resolutions of the Standardization Conference, 
would tend effectively to define the issues involved and would thus make it 
easier, alike for the Chinese Government and for the other interests involved, 
to realize the purposes of the agreement under which the Hukuang Bailways 
are being constructed, and to obviate the causes of complaint which have 
hitherto unfortunately been so frequent 
I avail fetc-l 


Paul S. Bjeinsoh 


[Note — ^With the object of giving more practical effect to the prin- 
ciple of impartial preference, as among the markets of the four 
nationalities concerned, in respect to the supply of equipment and 
materials, a conference of directors and engineers-in-chief of the 
Hukuang railways was held, under the chairmanship of the Director- 
General (Dr.^Jeme Tien-yu) at Hankow in May, 1914. The follow- 
ing articles were adopted by the conference in reference to bridges 
(May 20 and 21) and in regard to locomotives and rolling-stock 
(May 25).] 


Hankow Conference Resolnfions concerning Equipment and Materials for 
Hukuang Railways, May 20-25, 1914 


(Reported to the Department by Vice Consul General Jameson, Hankow, June 6, 1914. 

Bile No. 893.77/1386) 

BRIDG'ES 

1. Consulting engineers to he appointed by the Ministry of Communications 
in each country with authority to approve or reject the designs and work- 
manship of the manufacturers and to officially accept the structure on behalf 
of the section for which the structure is intended. 



ohusta 


155 


2. All indents must be forwarded by the managing directors of the varions 
sections to the Director-General, who in sending indents to the purchasing 
agents will forward copies simultaneously to the Group Bants in New York, 
London, Paris and Berlin for distribution and advertisement, and the repre- 
sentatives of the Group Banks in Peking for distribution to the local repre- 
sentatives of the American, British, French and German manufacturers. 

3. Sealed bids with recommendations to be presented to the Director-General 
at Hankow by the consulting engineers of the various countries interested 
ninety days from the date indents are forwarded by the Director-General to 
the Group Banks in New York, London, Paris and Berlin. Local manu- 
facturers forward their bids direct to the Director-General at Hankow. 

4. All tenders to be publicly opened in the presence of the bidders’ repre- 
sentatives on that date. 

5. The specifications of the material to be used throughout in tendering 
for the supply of bridges and bridge material and for the manufacture and 
fabrication of same shall be in strict accordance with the recognized standards 
and best practices prevailing in Great Britain, France, Germany and the 
United States of America. 

For material as accepted from Great Britain, the specifications for same 
shall be as recommended by the British Standards Committee as affiliated 
with the International Association for Testing Materials. 

For materials as accepted from the United States of America, the specifll- 
cations for same shall be in accordance with the specifications recommended 
by the American Society for Testing Materials, affiliated with the International 
Association for Testing Materials. 

For materials as acceptd from Germany, the specifications for same shall 
be in accordance with the specifications as recommended by Konigh Preussisdie 
Staatseisenbahn Verwaltung (Boyal Prussian State Railway Administration). 

For materials as accepted from France, the specifications for same shall be 
in accordance with the ^ecifications as recommended by a similar society 
in accordance with the specifications as recommended by a similar society to the 
above and affiliated with the International Association for Testing Materials. 

6. The chief engineers shall submit the type of bridge required, together with 
the span, length over-all, depth or height, width or loading, when tenders are 
invited, and the bidders shall submit tenders each in accordance with the ap- 
proved specification of the nationality of the bidders. 

7. The most favorable American, British, French and German bidders com- 
plying with the adopted specifications to be immediately awarded the contract 

LOCOMOTIVES AND ROLLING STOCK 

1. Consulting engineers to be appointed by the Ministry of Communications 
in each country with authority to approve or reject the designs and work- 
manship of the manufacturers and to officially accept the locomotives and 
rolling stock on behalf of the section for which the locomotives and rolling 
stock are intended. 

2. All indents must be forwarded by the managing directors of the various 
sections to the Director General, who in sending indents to the purchasing 
agents will forward copies simultaneously to the Group Banks in New York, 
London, Paris and Berlin for distribution and advertisement, and the repre- 
sentatives of the Group Banks in Peking for distribution to the lo<^ repre- 
sentatives of the American, British, French and German manufacturers. 

3. Sealed bids with recommendations to be presented to the Director-General 
at Hankow by the consulting engineers of the various countries interested 
ninety days from the date indents are forwarded by the Director-Gmieral to 
the Group Banks in New York, London, Paris and Berlin. Local manufactur- 
ers will forward their bids direct to the Director-G^eneral at Hankow. 

4. All tenders to be publicly opened in the presence of the bidders’ repre- 
sentatives on that date. 

5. The specifications of the material to be used throughout the tendering 
for the supply of locomotives and rolling stock and for the manufacture and 
fabrication of same shall be in strict accordance with the r^ognized standards 
and best practices prevailing in Great Britain, Fr^uce, Germany and the 
United States of AmeriCA 

Only nspal' tests of quality shall be required and no chemical analysis to 
be prescribed. Furthermore, the production of tbe steel shall be left to the 
manufacturers. 



156 


FOREIGN EEIAHONS 


In construction and design of details each country to use its own standards, 
method of construction, quality of workmanship and tests and all of the fore- 
going, providing they are standard in one of the four countries, are to be 
acceptable to the other three countries. 

All tenders to be accompanied by a certificate from the manufacturer indi- 
cating upon the basis of which specifications the tender is made, bidders being 
privileged to select one of the four following specifications : 

1. The specifications recommended by the British Standards Committee. 

2. The specifications recommended by the American Society for Testing Ma- 
terials 

3. The specifications recommended by the Kfinigl. Preussiche Staatseisen- 
bahn Verwaltung (Royal Prussian Satte Railway Administration). 

4. The ^ecifications recommeded by the Cahiers des charges unifies des 
compagniers famcaises de chamins de fer. 

6. English and metric standard system of measurements. In the event of 
specifications being Issued in the metric system the English equivalent to the 
nearest sixteenth of an inch higher is to he accepted, and in the event of 
specifications being issued in the English system the correspondingly higher 
metric equivalent is to be accepted. 

7. The engineer-in-chief specifies in the tenders the type of construction of 
the engines, including the general measurements required, as accurately as 
possible. All details referring to maximum axle pressure, power of engine, 
gradients, curves, etc., must be mentioned in the tender-specifications. 

In the tender-specifications accurate description of special engine fittings 
should be made by the engineer-in-chief. 

8- The construction of the engines shall be under the control of the con- 
sulting engineer. He is also responsible for tests of material used for their 
construction. Any proposals made by the consulting engineer should be care- 
fully considered. Parts which are rejected on account of faulty material or 
bad workmanship must on no account be used. 

9. The most favorable American, British, French and German bidders com- 
plying with the adopted specifications to be immediately awarded the contract 


FUe No. 898.77/1452 

TAe Secretary of State to Minister Reinsch 

No. 266 Department of State, 

Wcbshmgton^ Ayril 5, 1915. 

Sir: Keceipt is acknowledged of your Despatch No. 519 of 
January 18, 1915, with enclosures, regarding the present status of 
the tenders for bridge material for the Canton-Hankow (British) 
section, imder indent^ 11, 12, and 31. 

In reply you are advised that the Department approves your 
notes of November 12, 1914, and January 18, 1915, to the Minister 
of Communications, copies of which were enclosed with your 
despatch. 

I am [etc.] 

For the Secretary of State: 

Robert Lansino 

FUe No. 898.77/1469 

Minister Reinsch to the Secretary of State 

No. 624 ' American Legation, 

Peking^ May 1915. 

Sir: Referring to the Legation’s despatch (No. 286) of June 
29, 1914,^ I have the honor to enclose herewith a copy of the 
English text of a contract concluded on March 31, 1914, between 


CHINA 


157 


the Chinese Government and the The British and Chinese Cor- 
poration, Limited, for a loan of £8,000,000 for the construction of 
a railway from Nanking to Nanchang and thence to Pinghsiang 
to connect with and incorporate the present Pinghsiang-Chuchow 
Railway (the latter point being on the line of the Canton-Hankow 
section of the Hukuang Railways), with a branch to Wuhu (Arti- 
cle 2) — and with a preference for an extension from at or near 
Hweichowfo, via Yu Chien, to Hangchow (Article 19). The 
text of this agreement, hitherto nnobtainable, has been supplied 
to the Legation by an oflGlcial of the Ministry of Gommunications- 
The loan agreement transmitted herewith is of the classical type, 
and appears to require no comment except upon the political sig- 
nificance conferred upon it by the Japanese demands of January 
18 last,^® in view of the fact that the fifth paragraph of Article 
Five of those demands, reading in part as follows: 

China agrees to grant to Japan the right of constructing a raUway * ♦ * 
Une between Nanchang and Hangchow * * * 

contemplates the concession to J apan of a line which would closely 
parallel, if it did not altogether replace, the line of which the 
construction of the Nanchang-Hweichowfu section is given outright, 
and of which the option for the Hweichowfu-Yu Chien-Hangchow 
section is reserved, to the British and Chinese Corporation. 

I have [etc.] 

Paul S. Reln-soh 


Nanking-Htjnan Railway Loan Agreement 

This agreement Is made at Peking on the thirty-first day of March 1911, 
corresponding to the thirty-first day of the third month of the third year of 
the Chinese Republic, and the contracting parties are : 

The Government of the Republic of China (hereinafter called “the Chinese 
Government”) acting through the Minister of Finance and its Minister of 
Communications, of the one part, and the British and Chinese Corporation Lim- 
ited, (hereinafter called “the Corporation”) of the other part 
Article 1. The Chinese Government hereby authorizes the Corporation to 
issue a five percent (5%) Gold Loan for an amount of eight million pounds 
(£8,000,000) sterling. The loan shall be of the date on which the first series 
of bonds is issued to the public and shall be called The Chinese Government 
Five Percent Nanking Hunan Railway Loan. 

Article 2. The loan is designed to provide capital, first : For the resumption 
by the Chinese Government of the Anhui Provincial Railway Company’s works 
and property in the neighborhood of Wuhu : secondly. 

For the construction of a government line of railway from Nanking to 
Nanchang through Ningkwofu and Hweichoufu, and with connection to Wuhu 
and Kuangtechou ; and from Nanchang to Pinghsiang, to Ohuchow : thirdly, 

For the incorporation of the said Chuchow Pinghsiang railway as an integral 
part of the railway to be constructed under the present loan agreement from 
Nanking to Pinghsiang. The actual route to be followed between these two 
points shaU be decided by the Ministry of Communications after completion 
of the final survey. 

Article 3. The capital so provided shall be solely devoted to the purposes 
above-stated, including the purchase of land, rolling stock and other equip- 
ment, and to the working of the railway and to payment of interest on the 
loan during the period of construction which is estimated at four years from 
the actual beginning of the works, the commencement of which is not to be 
delayed beyond six months from the date of the signature of this agre^ent, 
within which period the Corporation shall place a sum not exceeding f 50O,(X)0 


“For. Eel. 1916, p. 79, 




158 


jFOEEIGlSr EEIATIONS 


at the disposal of the Railway Administration, to be held in Europe or remitted 
to China as it may direct, as a first instalment on account of the proceeds of 
the loan. This amount of £600,000 or whatever portion thereof is actually 
advanced, together with interest thereon not exceeding a charge of six percent 
(6%) i)er annum, shall be deducted from the proceeds of the first series of 
bonds. _ 

Article 4. The rate of interest for the loan shall be five percent (6%) per 
annum on the nominal principal, and shall be paid to the bondholders half- 
yearly. The interest on each series of the loan shall be calculated from the 
date on which it is issued to the public and shall be paid by the Chinese Gov- 
ernment during the time of construction either from the proceeds of the loan 
or from other sources, and afterwards in the first place, out of the revenue of 
the railway, and then from such other revenues as the Chinese Government 
may think fit to use for the purpose in half-yearly instalments according to 
the amount specified in the schedule attached to this agreement and four- 
teen days before their due dates, Western Calendar, as calculated half-yearly 
from the date on which each series of the loan is issued to the public. 

Article 5. The term of the loan shall be forty-five (45) years, repayment 
of principal shall commence after the expiry of the fifteenth (15) year from 
the date of the loan and, except as provided in Article 6 hereinafter, shall be 
made by yearly amortization to the Hongkong and Shanghai Banking Corpor- 
ation out of the revenues of the line or such other revenues as the Chinese 
Government may think fit to use for the purpose according to the amounts 
specified in the schedule attached to this agreement, but fourteen (14) days 
before their due dates, Western Calendar, as calculated from the date on 
which the first series of the loan is issued to the public. 

Article 6. If at any time after the lapse of fifteen (15) years from the date 
of the loan the Chinese Government should desire to redeem the whole out- 
standing amount of the loan or any part of it not yet due for repayment in 
accordance with the schedule of repayments hereto attached, it may do so 
until the twenty-fifth (25) year, by payment of a premium of two and a half 
(2^) per cent on the face value of the bonds, that is to say, by payment of 
one hundred and two pounds and ten shillings for each £100 bond, and after 
the twenty-fifth (25) year without premium; but in each and every case of 
such extra redemption, the Chinese Government shall give six months notice in 
writing to the Corporation and such extra redemption shall be effected by ad- 
ditional drawings of bonds to take place on the date of an ordinary drawing 
as provided for in the prospectus of the loan. 

When the loan has been fully repaid this ageement will immediately become 
null and void. Bonds and interest coupons which have matured will be col- 
lected in due order and cancelled by the Hongkong and Shanghai Banking 
Corporation as they are presented for payment and will be delivered by it to 
the Chinese Minister in London. The Corporation will refund in full to the 
Chinese Government the amount of any drawn bonds or any interest coupons 
which have not been presented for payment within thirty years from the re- 
spective due dates for redemption or payment of interest. 

Article 7. The Hongkong and Shanghai Banking Corporation having been 
appointed by the Corporation Agents for the service of the loan the payments 
due for amortisation and interest, referred to in Articles 4 and 5, shall be 
made in accordance with the amounts of the schedule attached to this agree- 
ment and fourteen days before their due dates. These payments shall be made 
by the Ministry of Communications to the Hongkong and Shanghai Banking 
Corporation, in Shanghai, in Shanghai sycee and/or coin of the national cur- 
rency, so soon as the said currency shall have been effectively established, 
sufficient to meet such payments in gold in London, exchange for which shall 
be settled with the bank either on the date of payment or at the option of 
the railway administration at any date or dates within six months previous 
to any due date for the repayment of interest and principal These payments 
may, however, be made in gold in London fourteen days before their due 
dates, if the Chinese Government should happen to have gold funds bona fide 
at their disposal in Europe not remitted from China for the purpose, and de- 
sire so to use them. 

In reimbursement of expenses connected with the payment of interest and 
repayment of principal of the loan the Hongkong and Shanghai Banking Cor- 
poration will receive a commission of one-quarter per cent on the annual loan 
service. 



CHINA 


169 


Article 8. The Chinese Government hereby unconditionally guarantees that 
the interest and principal of this loan shall duly be paid in full, and should 
the revenues of the railway and/or the proceeds of the loan be not sufficient 
to provide for the due and full payment of interest and repayment of prin- 
cipal, the Chinese Government will make arrangements to ensure that the 
amount of deficiency shall be met from other sources and handed over to the 
Hongkong and Shanghai Banking Corporation on the date upon which funds 
are required, to complete full payment of interest and repayment of principal. 

Article 9. The loan shall be secured by mortgage of the railway declared 
to be now entered into in equity by virtue of this agreement, and shall, as 
soon as possible hereafter be secured by a specific and legal first mortgage in 
favour of the Corporation upon all lands, materials, rolling stock, buildings, 
property and premises of every description purchased or to be purchased for 
the railway, and on the railway itself, as and when constructed, and on the 
revenues of all descriptions derivable therefrom. 

The provisions of this article in respect of the mortgage are to be con- 
strued and treated as equivalent in purport and effect to a mortgage cus- 
tomarfly executed In England. 

Article 10. The Corporation is hereby authorized to issue to subscribers to 
the loan, bonds for the total amount of the loan for such amounts as may 
appear advisable to the Corporation. The form of the bonds shall be settled 
by the Corporation in consultation with the Minister of Communications or 
the Chinese Minister in London. The bonds shall be printed or engraved 
in Chinese and English ; they shall bear the facsimile of the signature of 
the Minister of Communications and of his seal of office, in order to dis- 
pense with the necessity of signing them all in person. But the Chinese 
Minister in London shall previous to the issue of any bonds, put his seal 
upon each bond with a facsimile of his signature, as a proof that the issue 
and sale of the bonds are duly authorized by, and binding upon, the Chinese 
Government, and the representative of the Corporation in London shall coun- 
tersign the bonds as agents for the issue of the loan. 

In the event of bonds issued for this loan being lost, stolen destroyed, 
the Corporation shall immediately notify the Minister of CoSamunications 
and the Chinese Minister in London, who shall authorize the Corporation to 
insert an advertisement in the public newspapers notifying that payment of 
the same has been stopped and to take such other steps as may appear ad- 
visable or necessary according to the laws and customs of the country con- 
cerned, and should such bonds not be recovered after a lapse of time to be 
fixed by the Corporation, the Min:ster of Communications or the Chinese 
Minister in London shall seal and execute duplicate bonds for like amount 
and hand them to the Corporation, by whom all expenses in connection there- 
with shall be defrayed. 

Article IL All bonds and coupons and payments of interest and repayments 
of principal in connection with the service of the loan shall he exempt from 
all Chinese taxes and imposts during the currency of this loan. 

Article 12. All details necessary for the prospectus and connected with 
the payment of interest and repayment of the principal of this loan, not 
herein explicitly provided for shall be left to the arrangement of the Corpo- 
ration In consultation with the Chinese Minister in London. The Corpora- 
tion is hereby authorized to issue through its agents the Hongkong and 
Shanghai Banking Corporation the prospectus of the loan as soon as possible 
after the signing of this agreement, and the Chinese Government will in- 
struct the Chinese Minister in London to cooperate with the Corporation 
in any matters requiring conjoint action and to sign the proi^ectus of the 
loan. 

Article 13. The loan ^all be issued to the public in two or more series of 
bonds, the first issue to he made to an amount not exceeding four million 
pounds ^erling (i4, 000, 000) as soon as possible after the signature of t^is 
Agreement. The price of the bonds to the Chinese Goveminent slpiall b^e the 
actual price of issue to the public in London less flotation charge qf four 
(4) pointy xetalnable by the OorpoTation,.tfiat is to say, pf four pounfls. (£4) 
for every flOQ bond issued. The second ^d i^bsequqnt series shall be 
Issued in time to permit of uninterrupted continuance qf the^ work of con- 
struction. In amounts to be d^ennined by the Ministry of Oommunlcatlons In 
consultation the Corporation* , , | 



160 


FOKBIGN EELATIONS 


All expenses in connection with the flotation and issue of this loan, such 
as underwriting, commission and brokerage, telegraph charges, advertisingji 
postage, engraving and printing of prospectus and bonds, and legal fees, shall 
be borne by the Corporation. 

The Stamp duty shall be borne by the Chinese Government. 

Article 14. The proceeds of the loan shall be paid to the credit of a Nanking 
Hunan Railway Account with the Hongkong and Shanghai Banking Corpora- 
tion in London. Payments of loan proceeds into the credit of this account shall 
be made in instalments and on dates conforming to the conditions allowed to 
the subscribers of the loan. Interest at the rate of three (3%) i>er cent per 
oTiTinTn shall be granted on the credit balance of the portion of this account kept 
in London and interest on the credit balance of the portion transferred to 
China will be allowed at the Bank’s usual rate for such accounts. After deduc- 
tion of the funds required for the services of interest and for commission on 
this service during the time of construction, the Bank will hold the net pro- 
ceeds with accrued interest to the order of the Ministry of Communications, 
who, in authorizing the payment or transfer of any sums exceeding £20,000 
shall give notice to the Hongkong and Shanghai Banking Corporation ten days 
before the day on which they are required. Requisitions on the loan fnnds 
will be drawn in amounts to suit the progress of construction of the railway 
by orders on the Hongkong and Shanghai Banktng Corporation signed by the 
managing director or his dnly authorized representative, and the chief ac- 
countant, and accompanied by a certificate stating the nature and cost of the 
work to be paid for. 

Funds to meet monthly or quarterly estimates of construction expenses shall 
be transferred to Shanghai as and when required by order of the directorate 
general of railways of the Ministry of Communications, such transfers being 
effected through the Hongkong and Shanghai Banking Corporation and trans- 
ferred funds shall remain on deposit writh this bank until required for rail- 
way purposes. The rate of exchange for each transfer shall be settled with 
the bank either on the day on which such transfer is made or at the option 
of the directorate general of railways of the Ministry of Communications on 
any date or dates within six months previous to the day on which the transfer 
is to be made. 

The accounts of the railway will be kept in Chinese and English in accord- 
ance with the accepted modern methods, under the direction of a duly qualified 
British chief accountant to be chosen and appointed by the directorate general 
of railways of the Ministry of Communications. 

The chief accountant will draw up a list of the necessary staff for his depart- 
ment for submission to the managing director, who shall decide and make the 
appointments, and the chief accountant shall have sole charge under the 
authority of the directorate general of railways of the Ministry of Communi- 
cations and/or the managing director, or his duly authorized representative, 
of all disbursements and receipts of railway funds during the currency of this 
loan, and shall sign, in conjunction with the managing director, or his duly 
authorized representative, all documents appertaining to the disbursement of 
railway funds. The railway administration will publish annually upon the 
close of its financial year a report in the English and Chinese languages show- 
ing the working accounts and trafiie receipts of the railway, which report shall 
be procurable by the public on application. 

Article 15. If during the time of construction the net proceeds of the present 
loan with accrued interest, should, after deduction of the sums necessary for 
the service of interest on the loan, not be sufficient to complete the construction 
and equipment of the railway line, the amount of deficiency shall be provided 
In the first place, from such Chinese funds as may be available, .so as to permit 
of the uninterrupted continuance of the work of construction, any balance then 
uncovered being provided by a further foreign loan for the amount required 
to be Issued by the Corporation. The interest and other conditions of such 
supplementary loan to be the same as In the present agreement. If after the 
completion of the line there should be balance at credit of the railway account 
such unused balance shall be at the , disposal of the Ministry of Communications 
to be used either for the purpose of paying interest on the loan or for other 
construction work and improvements or equipment o* the railway, or for the 
construction and equipment of branch lines beneficial to the railway 

A^cle 16. construction and control of the railway shall be vested 'en- 
tirely In the Chinese Government. The directorate general of ralltvays cif the 



CHIKA 


161 


Ministry of Commnnications will appoint a managing director of the railway 
who will reside in the immediate neighbourhood of the line. The engineer-in- 
chief, who will be chosen and appointed by the directorate general of railways 
of the Ministry of Communications with the previous consent of the Corpora- 
tion, shall be a duly qualified British engineer and shall take orders from the 
directorate general of railways of the Ministry of Communication and/or the 
managing director, or his duly authorized representative. The terms of his 
agreement will be fixed by the directorate general of railways of the Ministry 
of Communications. His duties will be to make the survey, draw up the plans 
of the line and make estimates, to direct the efficient and economical execution 
of the works and to order under the authority of the directorate general of 
railways of the Ministry of Communications and/or the managing director, or 
his duly authorized representatives, all the materials and equipment necessary 
for the exploitation of the railway. He will draw up a list of the necessary 
Chinese and foreign engineering staff for submission to the managing director 
and the managing director shall appoint and send them to the engineer-in- 
chief who shall then assign works to them. Whenever functions of engineering 
employees, whether Chinese or foreign are to be defined, as well as in the case 
of their dismissal, the engineer-in-chief shall be empowered to take the neces- 
sary action by the directorate general of railways of the Ministry of Com- 
munications and/or the managing director or his duly authorized representa- 
tive. The services of the British engineer-in-chief will be retained during the 
currency of the loan. 

As and when any section of the line is constructed and ready for traffic it 
will be handed over by the engineer-in-ehief to the managing director who will, 
as far as circumstances permit, open such section to traffic, and the directorate 
general of railways of the Ministry of Communications will select and appoint 
a duly qualified British traffic manager acceptable to the Corporation who will 
be charged during the currency of this loan with the operation of the railway 
under the orders of the directorate general of railways of the Ministry of Com- 
munications and/or tlie managing director or his duly authorized representa- 
tive. The expenses for training a reasonable number of Chinese students in 
the engineering accounts or traffic departments shall be defrayed by the rail- 
way administration. 

The railway may maintain a force of Chinese police with Chinese officers, 
their wages and maintenance to be wholly defrayed as part of the cost of 
construction and maintenance of the railway. In the event of the railway 
requiring further protection by the military forces of the Central or Pro- 
vincial Governments, the same will be duly applied for the railway adminis- 
tration and promptly afforded, it being understood that such military forces 
shall be maintained at the expense of the Central Government or the Provinces. 

Article 17. All receipts and earnings of the line shall be regularly paid into 
the railway's account with the Hongkong and Shanghai Banking Corporation, 
interest on such funds being allowed by the bank at rates to be arranged for 
current account or fixed deposit as the case may be. 

All expenses of working and maintaining the line shall be paid from the 
receipts and earnings and any remainder thereof shall be charged with the 
service of the loan. It is hereby agreed that as soon as such surplus receipts 
suffice to meet the payments of interest and repayments of principal they will 
be paid to the Hongkong and Shanghai Banking Corporation in equal monthly 
Instalments commencing six months before such payments faU due. If, after 
payment of working expenses, and making due provision for payment of 
interest on the bonds, and for repayment of principal due in accordance 
with the amortization schedule hereto attached, there remain surplus funds 
unappropriated and properly available for other purposes, such funds shall 
be at the disposal of the Chinese Government to be used in such manner as 
the Ministry of Communications may decide. 

In the event of there being no surplus funds available as aforesaid from the 
earnings of the railway the amount required for payments of interest and 
repayments of principal shall be provided in accordance with the conditions 
of Article 8 hereinbefore. ' 

Article 18. The corporation will act as agents for the railway and admin- 
istration during construction for the purchase of all materials, plant and 
goods required to be imported from abroad. For all important purchase of 
such materials tenders shall be called for by the directorate general of rail- 



162 


FOREIGN RELATIONS 


ways of the Ministry of Communications and/or the managing director, or 
his duly authorized representative: in the case of all tenders indents and 
orders for the Importation of goods and materials from abroad, the said agents 
shall purchase the materials required on the terms most advantageous to the 
railway, and shall charge the original net cost of the same plus a commission 
of five percent. It is understood that no orders for materials shall be executed 
or any expenditure incurred without the approval of the managing director 
or his duly authorized representative, to whom the engineer-in-chief shall 
apply for sanction. • 

In return for payment of commission as above stated the Corporation shall 
be prepared to superintend the purchase of all foreign materials required for 
the construction and the equipment of the railway, which shall be purchased 
in the open market at the lowest rate obtainable, it being understood that 
all such materials shall be of good and satisfactory quality, and that the 
railway administration shall have the right to reject on arrival in China 
materials which do not come up to specifications. At equal rates and qualities 
goods of British manufacture shall be given preference over other goods of 
foreign origin. 

Original invoices and inspectors’ certificates are to be submitted to the 
railway administration: aU return commissions and rebates of every de- 
scription shall be credited to the railway : and all purchases made by the 
agents on behalf of the railway shall be supported by manufacturers* original 
invoices and inspectors’ certificates. 

No commission shall be paid to the agents except as above provided : hut 
it is understood that the railway administration shall provide out of railway 
funds for the remuneration of consulting engineers, whenever their services 
are engaged. 

With a view to the encouragement of Chinese industries preference will be 
given, at equal prices and qualities, over British or other foreign goods, to 
Chinese materials and goods manufactured in China. No commission will be 
paid to the Corporation on purchases of such materials and goods. 

It is understood and agreed that after completion of construction of the 
railway the Corporation will he given tlie preference for such agency business, 
during the currency of the loan, for the supply of foreign materials as the 
railway administration may require, on terms to be hereafter mutually agreed 
upon. 

Article 19. A branch line from a point on the main line at or near Hweichowfa, 
passing through Yu Chien, to Hangchow, and a connecting line from the 
Nanchang Pingshiang section to a point on the Hupei section of the Hukuang 
Railway, if found by the Chinese Government to be profitable or necessary 
later on, shall be built by the Chinese Government with fimds at their disposal 
ftrom Chinese sources, and if foreign capital is required preference wiU be 
given to the Corporation. The length of such lines shall be determined by 
the Chinese Government. 

Article 20. The Corporation is hereby appointed trustee for the bondholders, 
and in any future negotiations respecting this loan or matters arising in con- 
nection- therewith, which may take place between the railway administration 
and the Corporation, the latter are hereby empowered to represent the bond- 
holders and to act on their behalf. 

Article 21. If after the signature of this agreement and before the publica- 
tion of the prospectus for the issue of the loan, any political or financial crisis 
should take place by which the market and the prices of existing Chinese 
Government stocks are so affected as to render, in file opinion of the Corpora- 
tion, the successful issue of the loan impossible on the terms herein named, 
the Corporation shall be granted a reasonable extension of time to be mutually 
agreed upon for the performance of their contract. If within the time limit 
then determined the loan shall not have been issued, then this contract shall 
become null and void, and any advances made by the Corporation under the 
provisions of Article 3 of this agreement shall be repaid by the Chinese 
Government with accrued interest, hut without any other compensation or re- 
muneration whatsoever. 

Article 22. The Corporation may subject to all- Its obUgations under this 
agreement, transfer or delegate all or any of its rights, powers and discretions 
thereimder to any British company, directors or agents with power of further 
transfer and subdelegation: ^uch transfer, subtransfer, delegation or sub- 
delegation to be subject to the approval of the Ministry of Communications, 



CHIHA 


163 


Article 23. This agreement having been signed and sealed by the contracting 
parties will be ofaeially communicated to the Minister of Great Britain in 
Peking by the Waichiaopu after having been approved by the President of 
the Chinese Eepublie. 

Article 24. Three sets of this agreement are executed in Chinese and 
English, two sets to be retained by the Chinese Government and one set by 
the Corporation. 

In the event of any doubt arising regarding the interpretation of the 
contract the English text shall rule. 

Signed at Peking by the contracting parties this thirty-first day of the 
third month of the third year of the Chinese Eepublie, corresponding to the 
thirty-first day of March 1914, Western Calendar. 

Chit Oh’i-Ch’ibn, 
Mimster of CommuniGationa 
Chott Tzu-Ch’i, 
Mimster of Fitumoe 

[SKALS OF THE MINISTEBIES OF COMMUNICATIONS AND FINANCE] 

S. F. Maybes, 

For the British and Chinese Corporation Limited (Seal) 


FUe No. 893.77/1492 


The Secretary of State to Minister Reinsch 

[Telegram] 


Depaetment oe State, 

Washington, November 18, 1915, 3 p. m. 

Ck^mplaints received stating Hukuang asks bid for locomotives re- 
quiring British design and that administration expects to place order 
by private tender contrary to agreement concerning American stand- 
ards and public opening of bids. Urge the Minister of Communica- 
tions to instruct as promised in your telegram of November 11, 1914. 

Labtsinq 


File No. 893.77/1493 

Minister Reimch to the Secretary of State 

[Telegrams] 

AjUEBIOAN liEQATIOK, 

Peking, November 1915, noon. 
Managing director of Hukuang Kailway agrees to accept tenders 
for ten locomotives with alternative American standard specifi- 
cations. Copies of the tend^ to be opened on January 15 in New 
York have been sent to Hunt. 

Keinsch 


me No. 898.77/1494 

Amerioak Legation, 

Peking, November 26, 1915, 3 p. m. 

Hukuang bridge specifications, prepared by Cox, require ^op erec- 
tion. Managing director refuses to modify, considering requirement 
proper. I beg to request instructions as to how far to press protest 
and whether American manufacturers are willing to guarantee fit of 
bribes withbut ^op erection. 

Beinsch 



FOKBIGN BBIATIOirS 


164 

PUe No. 898.77/1803 

Mmister Beinsah to the Secretary of State 

Ko. 836 Ambeioak Legation, 

Peking^ November 26, 1915. 

Sir: I liave the honor to enclose, for the information of the De- 
partment, copies of despatches dated November 20 (No. 123), 23 
(Nos. 124 and 125),* and 24 (No. 126),* from the Consulate General 
at Hankow, concerning materials for the Hulcuang Railways; a copy 
of the Legation’s instruction No. 1330, of even date to Hankow, and 
a copy of a note dated to-day, in which the Legation is lodging a 
protest with the Minister of Communications in regard to specifica- 
tions for bridges included in requisition No. 65. 

I have [etc.] 

Paul S. Reinsch 


[Inclosure 1 — ^Extract] 

Consul General Cunningham to Mmister Reinsch 

Amebioan Oonsttlatb General, 

Hankow, November 20, 1915. 

Sie: It lias been Imown to this office for a month that specifications were 
being prepared by the so-called British section of the Canton-Hankow Railway 
for locomotiyes and rolling stock, but it was not known earlier than the 17th 
instant that tenders had actually been invited for the supply of eight (8) 
locomotives. Upon inquiry to Dr. Jeme Tien-yow, director-general, it was 
ascertained that specifications had been sent to Messrs. Burnham Williams and 
Company, the Baldwin Locomotive Works, and the American Locomotive Com- 
pany for quotations on locomotives, and on the 18th Director-General Jeme 
stated 

Please note that in view of the fact that all the works of England, Germany and 
France arc unable to supply these goods on account of the war in Europe, no tenders 
will be invited this time, as reported by the managing director of the section con- 
cerned. 

The managing director and Mr. A. G. Cox, engineer-in-chief, were both called 
upon yesterday in Wuchang to inquire why these indents had not been for- 
warded in accordance with Sections 2 and 3 of resolutions regarding locomo- 
tives and rolling stock, and the former ofiicial stated that it was entirely 
due to the European war. He further assured me that it was not intended to 
establish a precedent in any way, nor was it intended to ignore American 
interests, but it seemed for the best interest of all to have the tenders made 
privately without waiting for ninety days to elapse as some of the locomotives 
were urgently needed. Time seemed to be the only factor to him as he stated 
that they had received insti-uctions to complete the railroad to Changsha by 
the end of 1916, though it is very difficult to see any reason for this undue 
haste to justify ignoring the established practice. 

Mr. A. G. Oox, engineer-in-chief, quite characteristically declared that he 
had the right to purchase locomotives or any other supplies wherever and 
whenever he liked. He stated present tenders would be secured by American 
manufacturers, he regarded the resolutions as impractical and more than use- 
less as they dispensed with the technical knowledge of an engineer and re- 
quired him to accept whatever was offered him from any country so long as 
it was manufactured in accordance with that country’s specifications. He 
seemed to forget that he was a party to the resolutions. Mr. Cox has impressed 
me at all times, and particularly yesterday, as a man to whom no law or 
regulation is known except his own idea. I do not consider that he la anti- 
American any more than he is anti-anyone else who happens to criticise or 
attempts to regulate his manner of action. He stated that the United States 


* Not printed. 



cfflrorA 


165 


had only two locomotive builders who could, by any possible chance, tender 
for locomotives and he did not propose that tenders should be received from 
any American, British, or other firm which was not on his approved list 
Under these circumstances he saw no reason for public tenders ; therefore the 
two American companies were asked to tender. It is probably known to the 
Legation as well as to this Consulate General that the “approved list” for 
British tenders is a very important one, and none but those on this list are 
permitted to tender for supplies required in the British colonies. 

Mr. Cox’s position, and also that of all the railway authorities, is absolutely 
untenable if the resolutions regarding locomotives and rolling stock are to be 
considered as in force, and this is true even though this office is assured that 
it is not to establish a precedent for future tenders. It seems highly probable 
that time is a factor of some importance, though these gentlemen exaggerate it 
at the present moment, but it is thought that these specifications have been com- 
pleted sufficiently long to have permitted tenders being made by the end of this 
year if public tenders had been called, which is as early as private tenders may 
be expected. It is possible that these supplies can only be had by the United 
States, and in so far as our manufacturers are concerned, nothing might be 
lost to permit these tenders being made in the manner suggested. However, 
conditions of the English market are not known to this office. There is a 
further reason for objecting to the present mode of tendering, because this office 
is informed by Mr. G. L. Miner, representative of the American Locomotive 
Company, that if the particulars approved are strictly complied with, it will be 
necessary for an unusually high price to be charged, as they are upon the 
British lines, and there is a probability that once started along this line and 
normal conditions are resumed in Europe, American manufacturers will not be 
able to tender successfully. Section 5 of these resolutions specifically guar- 
antees that tenders for the supply of locomotives shall be in strict accordance 
with the recognized standards and the best practice prevailing in the four 
countries participating in the loan. * * * 

I have r^tc.1 

Edwin S. Cunningham 


' [Inclosure 23 

Minister Reinsch to Consul Q-eneral Cunningham 

No. 1330 Ame!Rican Legation, 

Peking, Noveml)er 26, 1915, 

Sir: I have to acknowledge the receipt of your telegram of November 24, 
4 p. m., which reports that ten locomotives are now to be ordered on public 
tender. 

Your despatch No. 123 of the 20th instant clearly brings out the fact that 
while the asking for bids for locomotives in this case could be explained as due 
to the present abnormal conditions, yet if allowed to pass it would constitute 
a bad precedent on two points : 1st, the purchase of important materials with- 
out public tenders; and 2d, the specification of a particular type of rolling 
stock. As such a practice, no matter how unexceptional the present motives may 
be, is distinctly contrary to the provisions of the loan contract, and the resolu- 
tions, interpretative thereof, which have been adopted by the responsible en- 
gineers and ratified by the Minister of Communications, it is very important 
that an order without pubic tender and upon specifications which do not give 
an equal standing to the accepted engineering practice of each of the four 
nations concerned should not have been allowed to pass without protest 

I also have to acknowledge the receipt of the despatches (Nos. 124 and 125) 
of November 23, in which you report on the unwillingness of the director- 
general to modify requisition No. 65. For your information, I am enclosing a 
copy of a protest sent to the Minister of Communications to-day. 

It is the opinion of this Legation that it shoud be settled, once and for all, 
that the procedure of awarding contracts for materials is to conform strictly 
to the letter and spirit of the loan contract and the resolutions of the engineers. 
Any other course of action would lead to endless uncertainty and friction. 
The Minister of Communications having sanctioned the resolutions, there should 
be no further question of their applicatlmi. They provide a clear and simple 

106413'’“-i'Biai6 ^16 



166 


FOBJBIGN EELATIONS 


rule, by adherence to which all difficulties can be avoided and the manufac- 
turers of the nation concerned placed upon a footing of equal opportunity. 

Should there be continued difficulty in obtaining adherence to the resolutions, 
it is my intention to recommend that the American Group withhold its quota of 
the loan funds until the matter is equitably adjusted. 

I am [etc,] 

Paul S. Reinsoh 


[Inclosure 3] 

MM&ter Reimch to the Minister of Communications 


American Legation, 
Peking, November 26, 1915. 


Exceixenoy: I have the honor to inform you that the managing director 
of the Hukuang Railways has, on November 22 last, declined to act upon 
a protest of the American Consul General at Hankow that the specifications 
in requisition No. 65 (for bridges) be modified so as to conform to the resolu- 
tions regarding the standardization of bridges. 

These resolutions established the principle that in specifications for bridges, 
the recognized standards and best practice prevailing in each of the four 
countries shall be accepted. 

Requisition No. 65 requires that the bridges ordered shall' be completely 
erected in the shops before being shipped. This procedure is not in accord- 
ance with the recognized standards and best practice prevailing in the United 
States. The methods of manufacture there have, through great diligence and 
expense, been made mathematically accurate to such an extent that shop erec- 
tton is not practiced, as it would be an entirely superfluous work and expense. 

Specifically to require shop erection is therefore to make a condition con- 
trary to the recognized standards and best practice prevailing in the United 
States, and for that reason also contrary to the resolution adopted by the 
engineers, which have been given authority by instructions from your ex- 
cellency. 

I therefore have the honor to request that the managing director be in- 
structed to have requisition No. 65 and all future requisitions drawn so as to 
be in accordance with the resolutions and the requirements of equal op- 
portunity, under which the standard practices of the four countries con- 
cerned must be recognized. 

I avail [etc,] 


Paul S. Reinsoh 


Pile No. 893.77/1494 


T?ie Secretary of State to Minister Reimoh 

[T^egrami] 


Depaetseent of State, 

Washington, December 17, 1916, Jf. p. m. 

Your cipher telegram of November 26, 3 p. m. Use of template 
and spacing machines makes all spans exact duplicates. This with 
inspection hy consulting engineer should be sufficient. Full reply 
by mail. 

Lastsinq 


BTe No. 893.77/1601 

The Secretary of Stale to Minister Reimeh. 

No. 364 Depabtmbnt of State, 

Washmgton, December 18, 1916. 

Sir: Referring to previous correspondence and especially to your 
telegram of November 26, 3 p. m., regarding tib.e question of tenders 



CHINA 


167 


for bridges in connection with the Hukuang Railways, there is en- 
closed herewith for your information copy of a letter of December 
14,* to the Department from the American Group transmitting a 
letter receiyed by them from the president of the United States 
Steel Products Company in connection with this matter. 

You will observe from the enclosed letter that the Steel Products 
Company is unwilling to give the guaranty required by the manag- 
ing director of the Hukuang Railways because it has no knowledge 
of what class of men would attempt to erect these bridges, what ex- 
perience they had had on this class of work or what delays the rail- 
road company might claim. The company further states that as its 
work is laid out by means of templates and mechanical spacing 
machines, all spans of the same length would be exact duplicates and 
if one span of each length was erected and properly cheeked the 
railroad company would have sufficient assurance that the spans 
would go properly together. The company has bid upon the specifi- 
cations exactly as called for, i. e., has given a price including shop 
erection of each span, and has also given an alternate price based 
upon the shop erection of one span only of each length, which alter- 
nate proposition, it feels sure, will save money for tihe railroad com- 
paiiy, if considered. 

You are instructed to take this matter up with Chinese Govern- 
ment and urge the fairness of the proposal of the United States 
Steel Products Company. 

I am [etc.] 

For the Secretary of State: 

Feank L. Pouk 


FUe No. 893.77/1603 

Secretary of State to Minister Reinsoh 

Ao. 377 Dbpaktmbnt or State, 

Washington, January 5, 1916. 

Sm; Receipt is acknowledged of your Despatch No. 835 of No- 
vember 26, 1916, enclosing copies of three despatches received from 
the American Consul at Hankow, concerning the purchase of ma- 
terials for the Hukuang Railways, a copy of the Legation’s instruc- 
tion to Hankow on this subject, and a copy of a note of November 
26, 1915, to the Minister of Communications in which the Legation 
lodges a protest ih. regard to specifications for bridges included in 
requisition No. 65. 

Your instruction of November 26 to Hankow regarding the 
bids W locomotives and your action in protesting to Qie Minister 
of Communications against the above-mentioned bridge specifica- 
tions which discriminate against American maniifacturers are 
approved. i ' ' 

I am [etc.] 

For the Secretary of State : 

Feank L. Pout 


* Nat printed. 



FOEEIGIT BEIATTONS 


168 

FaeNo.89S.77/1515 

Minister BeinsoJi to the Secretary of State 

[Telegram] 


American Legation, _ 
Pehing^ February 21, 1916, mi&nigM. 

While awarding order for ten locomotives to an American com- 
pany Hukuang managing director accepted tender according to 
British not iGnerican standards although cost of former fifty 
thousand dollars higher- This defeats the policy of the May 
resolution. 

I have the honor to suggest either demand for removal of British 
chief engineer for not adhering in his specifications to princMe of 
equal opportunity or, preferably, action by the Ameiican Group, 
prevailing on bankers to issue orders placing standards of the other 
nations on an equal footing. In either case it may be necessary inti- 
mate that American quota of loan funds would be withheld until 
matter equitably settled. 

Beinsch 


FUe No. 893.77/1616 

The Secretary of State to Minister Reinsch 
[Telegram] 


Department of State, 
"Washington, February 25, 1916, 3 p. m. 

Tour cipher telegram of February 21, midnight. Urge strongly 
upon Chinese Government the duty of compliance with Hukuang 
Loan Agreement. This Government learns with astonishment of 
managing director’s violation of Article 18 and strongly protests. 
Article 17 places construction and control railway exclusively in 
Chinese Government. The American Government expects it to 
enforce observance of agreement by engineers and managing director 
or to remove and replace them. 

Lansing 


File No. 893.77/1524 

The Seeretary of State to Minister Reinsch 

iTo. 419 Department op State, 

Washington, AprU 6, 1916. 

Sir : There is enclosed herewith copy of a letter dated March 31, 
1916, from the American Group, with reference to reports in the 
public press to the effect that the Chinese Government has signed 
an agreement permitting Eussia to construct a railroad from HarW 
to Aigun with a branch to Tsitsihar. You will ascertain and advise 
the Department if there is any foundation for the press reports 
referred to in the letter above mentioned. If such an agreement 



CHINA 


169 


has been entered into with Eussia or is being considered, you will call 
the attention of the Chinese Government to the contract with the 
American Group described in the letter herewith enclosed. 

I am [etc.] 

For the Secretary of State : 

Feank L. PoLja: 


[InclosTire] 

The American Ch^cmp to the Secretary of State 


New Yoek, March SI, 1916. 

Sie: We presume it is unnecessary to remind you — ^in connection with the 
current reports in the public press that the Chinese Government has signed an 
agreement permitting Russia to construct a railroad in Manchuria from Harbin 
to Aig^, with a branch to Tsitsihar — that in October 1909 there was signed 
a preliminary agreement between the Viceroy of Manchuria and the Governor 
of Fengtien on behalf of the Manchurian Administration, and the American 
Group, for the construction of a railroad from Chinchow to Aigun through 
Tsitsihar." This agreement was ratified by edict of the Imperial Chinese Gov- 
ernment on January 20, 1910," and the American Legation at Peking was for- 
mally notified of the fact" and was informed that the Viceroy of Manchuria 
had been instructed to negotiate a detailed agreement with the representative 
in China of the American Group." On April 26, 1910, the Viceroy of Man- 
churia and the Governor of Fengtien transmitted to the then agent in China 
of the American Group the English and Chinese text of a loan agreement of 
the Ohinchow-Algun Railway, stating that such agreement constituted “the 
final draft entered into and definitely fixed between the Viceroy of Manchuria 
and the Governor of Fengtien on the one part, and the American Group on the 
other part ”, and that “ as soon as ever we, the Viceroy of Manchuria and the 
Governor of Fengtien, shall have memorialized the Throne and obtained the 
Imperial assent thereto, the signatures shaU thereupon be fixed and the agree- 
ment be made operative 

While the American Group desire expressly to state that they have no wish 
to press at this time for final ratification of the loan agreement above referred 
to, yet they deem it proper to inform the State Department, as a matter of 
record, that they have never formally relinquished such rights as they may 
have under the arrangements -with the Chinese Government as detailed above. 
On the contrary, they have stated to the Chinese Government from time to 
time that they consider all their rights under the foregoing arrangements to be 
reserved and continued. 

We have no intention by this letter to suggest action to the Department of 
State, but simply write to inform you of our position, which is, of course, a 
matter of record in the Department but which you may be glad to have re- 
stated thus. 

Respectfully, 


The Ambbioan Geouf, 
By J. P. Mobgak & Co, 


Pile No, 893.77/1586 

Minister Beimch to the Secretary of State 


No. 1037 Amekican Legation, 

Pehmg^ April 1916, 

Sir : I have the honor to enclose for your information copies of a 
railway loan recently concluded between the Chinese Government 
and the Eusso-Asiatic Bank. 


wppr, Rel. 1910, pp. 231-233. 


^ Id. 246. 


“Id. 24a 


IT Id. 252-253. 



170 


FOREIGN EELAXTONS 


The railway for the construction of which provision is made, is to 
be known as the Pin-Hei Line. The railway is to connect Harbin 
with Mergen and Heiheifu, on the Amur River opposite Blagovesh- 
chensk. Mergen is to be connected by a branch with Tsitsihar on 
the Trans-Manchurian Railway. The projected line is, therefore, in 
part almost identical with the northern portion of the Chinchow- 
Aigun project. 

It is to be remarked that while the Trans-Manchurian Railway is 
the property of a company, the Chinese Eastern Railway Company, 
which represents the Russian Government, the contract for the Pin- 
Hei Railway is drawn up along the lines of the usual railway loans 
to the Chinese Government. The funds are borrowed by the Chinese 
Government to which the railway is to belong. The bank, of course, 
enjoys the customary rights of control in connection with auditing 
and operation. 

In a conversation on the concession, Mr. Grave^ the Russian 
Charge d’Affaires, explained to me that the construction of the sec- 
tion from Harbin to Mergen was considered especially desirable be- 
cause of the agricultural and forestry resources of the region trav- 
ersed. He stated that while the commencement of the work would 
have to be delayed on account of the war the above portion at least, 
would be undertaken as soon as money could be secured. 

The eventual raising of a part or the whole of this loan in America 
and the purchasing of materials from the same source is taken ac- 
count of in the contract (Ai'ticles VII and XIV) ; it would, there- 
fore, appear that the Russian bank would be inclined to make ar- 
rangements with American capitalists to further the early construc- 
tion of the line. 


I have [etc,] 


Paul S. Reinsch 


[Inclosure — ^Translation] 

Agreement for the Chinese Ooverrment 5% OolA Loan of 1916 for the FmrEei 
RaUway, — March $17, 1916 

Aeticle L Contracting Parties, — ^The present contract is concluded at Peking 
the 27th day of March, 1816, the twenty-seventh day of the third month of the 
fifth year of the Chinese Republic, between the Government of the Chinese 
Republic (hereinafter called “the Chinese Government”), represented by His 
Excellency Chow Hsueh-Hsi, Minister of Finance, and His Excellency Liang 
Tun-Yen, Mi nister of Communications, duly authorized, of the first part; and 
the Russo-Asiatic Bank (hereinafter called “The Bank”), a joint stock com- 
pany estabUshed in Petrograd, represented by Mr. L. de Hoyer, duly authorized, 
of the second, part, 

Abticue II. Date, Designation and Amount of the Loan, — The Chinese 
Government authorizes the Bank to issue a gold loan for the nominal amount of 
Roubles 50,000,000 (fifty millions) either at once or by successive issues ec[ulv- 
alent to an approximate amount in French francs, Belgian francs, pounds ster- 
ling, or American dollars, at the option of the Bank. 

The proceeds of the issue shall be carried by the Bank to the credit of the 
Chinese Government in the currency of the market or markets of issue, and for 
the amount realized in each market The payment of interest and the re- 
payment of the bonds shall be effected In the currency of the issuing market, 
and In other places in their respective currencies at the rate of the day. The 
Bank shah be in charge thereol 

The loan shall bear the date of the issue of the bonds. It shall be known 
as : The “ Chinese Government 6% Gold Loan of 1916, for the Pin-Hei RaU- 



CSHISTA 171 

Abticle III. Purpose of the Loan . — ^This loan is destined exclusively to fur- 
nish the funds required for the following purposes : 

1. The construction, equipment and putting into operation of a line which 
shall connect Hafbin, or a point situated on the Chinese Eastern Railway 
near Harbin with Hei-hei-fu (Sahalian), situated on the Amur opposite the 
town of Blagoveshchensk, passing through Mergen, 'with a branch road connect- 
ing Mergen and Tsitsihar, The exact route of the line shall be decided upon 
by common consent between the director general, representing the Chinese 
Government, and the engineer in chief, designated according to Article 15, 
who will for this purpose be guided by the interests of the enterprise. 

It is understood that the construction and equipment shall comprise the 
acquisition of the necessary lands, rolling-stock and other installations, and 
the means of connection with the Chinese Eastern Railway in such manner as 
to assure the easy and profitable operation of the line. 

The Chinese Government will take all the measures and assume all necessary 
Indemnities and charges whatsoever with a view to assuring the passage of 
the line through public property, both governmental and provincial, and private 
property, both in towns and villages and in the country. All the funds re- 
quired for this purpose by the Chinese Government, of which estimates shall 
be made by the director general, shall be put into his hands, and shall be 
charged against the proceeds of the loan. However, tlie amount of pay- 
ments to be made under this heading to the Chinese Government shall be fixed 
by agreement between the director general and the Bank, and shall be subject 
to the revision of the engineer in chief, in conformity with Article XIII, 
hereafter. 

2. For the purchase of the line running from the town of Tsitsihar to the 
Chinese Eastern Railway, and the incorporation of that branch with the pres- 
ent line. The purchase of the line shall be made through the Director General. 

3. For the payment of the interest coupons upon the loan, as well as the 
working expenses during the period of construction, the duration of which 
is estimated at five years, and which shall be definitely fixed after the com- 
pletion of the surveys. 

In case the construction should be concluded sooner than is anticipated, the 
balance of funds so obtained shall be consigned to the Bank, and shall con- 
stitute a reserve fund for the payment of the interest couxwns on the present 
loan, or else for work of improvement or repair of the line. 

In case the Chinese Government should come to an arrangement with the 
Russian Government for the purpose of connecting Hei-hei-fu and Blago- 
veschensk, by a bridge or by a ferry-service between the two banks of the 
Amur, the details of this enterprise shall be the subject of an exchange of 
letters between the representatives of the Chinese Government and the Bank, 
which letters shall be thereupon annexed to this contract. 

Abticle IV. Interest . — ^The interest upon the present contract shall be 
reckoned at 5% (five per cent) per annum upon the nominal amount It shall 
be paid semi-annually by the Chinese Government, through the Bank, to the 
bondholders; it shall be calculated to run from the date of the issue of said 
loan to the public, and paid under the conditions stipulated hereinafter. 

Abticle V. Term and Repayment . — ^The term of the loan shall be forty-six 
years. The payment of principal shall begin at the expiration of sixteen years, 
counting from the date of issue to the public, subject to the right of antici- 
patory repayment as provided for in Article VI, hereafter. It shall be 
effected by annual and uniform amortizations, paid in halves, semi-annually, 
to the Bank. These payments shall correspond to the amounts specifi:ed in 
the amortization table annexed to this contract, and shall be made fourteen 
days before their due dates as fixed according to the European calendar, each 
half year following the date of public issue. Bonds and interest coupons as 
matured will be taken up and cancelled by the Bank, when they are presented 
for payment The Bank will send them in good order to the Chinese Min- 
isters accredited to the countries in which such payment may have been mada 

The Bank shall repay to the Chinese Government the whole amount of 
every bond or interest coupon which may not have been presented for pay- 
ment within thirty years from the date on which it was repayable or payable. 

When the loan shall have been entirely paid off, the present contract shall 
immediately become null and void. 

Abticle VI. Anticipatory Repayments . — The Chinese Government, after the 
expiration of sixteen years from the date of the loan, shall have the right 



172 


rOKEIGHir KEIATIOHS 


to repay at any time, in whole or in part, the amount of the loan not yet 
repaid, in consideration of a premium of 2^/^% (two and one-half per cent), 
in case of repayment before the 27th year, upon the nominal value of those 
bonds on which payment may not yet be obligatory according to the table 
annexed to this contract :--that is to say, by paying for a bond of one hundred 
roubles, for example, two roubles and fifty kopecks. After the 27th year, it 
may make repayment without any premium whatever. 

Every time that the Chinese Government wishes to make such an extraordi- 
nary repayment, it must give six months previous notice to the Bank in 
writing. 

These extraordinary repayments shall be made by supplementary drawings 
of bonds, which shall take place at the same date as the ordinary drawings 
in accordance with the provisions of the prospectus of the loan. 

Abticle VII. Service of the Loan . — The Chinese Government, by these pres- 
ents, binds itself formally and without reserve to pay in full and punctually 
the interest and the principal of the loan, in accordance with the schedule 
annexed to the present contract. Furthermore, the Chinese Government ac- 
cords to the holders of the bonds of the present loan a special guaranty on the 
Pin-Hei Railway. 

This special guaranty constitutes a first mortgage on the line itself, its 
stationary and rolling-stock, its appurtenances and its profits. This is ac- 
cepted by the Bank in the name of the bondholders. 

If the Chinese Government is in arrears in the payment, at the date fixed, 
of all or part of the half-yearly interest or repayment of principal, the Bank 
shall have full power to exercise all the rights accruing from this special 
guaranty according to the laws in force on this subject in the countries of 
Europe, such as Russia, France or England. 

During construction, the interest shall be paid out of funds deducted from 
the proceeds of the loan. 

The Chinese Government shall take the funds necessary for the payment of 
interest, after the completion of construction, and for the repayment of prin- 
cipal, from the receipts of the railway, and in case of their insuflSiciency, from 
its general revenues. 

The receipts of the railway shall be deposited without delay in the bank, and 
placed in a special account in roubles for the railway, at Harbin or at such 
other branch of the Bank in North Manchuria as it might designate. 

The Bank will take out of these deposits the total amount necessary for the 
service of the loan on the two due dates next following ; this operation will be 
so effected as to assure the provision of the gold required for this service at 
least fourteen days before the due dates. 

The half yearly payments due for interest and for repayments of prin- 
cipal shall be deposited in the Bank fourteen days before the due dates fixed by 
virtue of the preceding paragraphs. 

These deposits shall be made by the Minister of Communications with the 
Bank in Harbin, and must be of an amount sufficient to cover the payments 
in gold in Europe and in America, 

In case, however, the receipts of the railroad should not be sufficient for 
the payment of interest and repayment of principal, and the Chinese Govern- 
ment should consequently be obliged to raise the necessary funds from its 
general revenues, such deposits shall be made by the Minister of Communica- 
tions with the Bank at Shanghai or at such a place as the Bank may designate, 
in Shanghai sycee approved by the Bank, or in national currency (whenever 
this is in circulation) ; and they must be of an amount sufficient to cover these 
payments in gold in Europe and in America. 

The payments^may, however, be made in gold in Europe, if the Chinese Gov- 
ernment happens to have at its disposal in Europe bona fide gold funds, not 
transferred from China for this purpose, which it wishes to use for this pur- 
pose. 

In reimbursement for the expenses in connection with the payment of in- 
terest and the repayment of the principal of the loan, the Bank shall receive 
from the Chinese Government a commission of %% (one-fourth per cent) upon 
the annual loan service. 

If in the future any CShinese State bank establishes a branch in Russia, 
and not a mere correspondent or foreign agent, this State bank shall share 
with the Bank to the extent of 50% (fifty per cent) in the service of transfer 
of funds. 



CmiNA 


178 


Articib VIII. Price of the Loan . — ^The price of bonds to be paid by the 
Bank to the Chinese Government shall be the price of their Issue to the public 
in the Petrograd market, less 6% (sis per cent) of their nominal value. 
In case no issue should be made in Petrograd, the price shall be that obtained 
in the place or places of issue, less 6% of the nominal value of the bonds. 
The Bank reserves the right to determine the amounts to be issued on the 
several markets. In fixing these amounts, it will take into consideration the 
conditions of those markets. 

The Bank will assume the expenses incident to the issuing and placing of this 
loan, such as underwriting, commission and brokerage, outlays for telegrams 
and correspondence, advertising, engj^aving and printing of the prospectus and 
bonds, stamps and taxes. 

The director general or the Ministers of China in the countries where the 
issue is to take place, shall be notified in advance of the rate of issue of the 
loan, which must be as favorable as possible. 

Articusi IX. lasrue . — The Bank is authorized to prepare immediately the 
gold bonds representing either the total amount or only a portion of the loan ; 
it will keep them in its possession until the issue of the loan at as early a 
date as it considers favorable for making it. The Bank is authorized to 
deliver the bonds to subscribers in due time, according to prospectus of the 
loan. 

The denomination of bonds shall be fixed by the Bank, which may prepare 
bonds of different values. 

The Bank shall determine the form of the bonds, the language in which 
they shall be drawn up, and the currency in which their value shall be ex- 
pressed, in conformity with the usages in the countries in which the issues are 
to be made. It shall in advance inform the director general of this, or the 
Minister of China in the countries of issue. 

The bonds shall bear the facsimile of the signature and of the official seal 
of the Minister of Finance and of the Minister of Communications, in order to 
relieve them from signing them themselves. 

As soon as the bonds shall have been printed, the Chinese Minister at Petro- 
grad, or in the other countries where the issue is to be made, will cause to be 
affixed to each bond the facsimile of his official seal and of his signature, as 
proof that the issue and sale of these bonds fxve authorized by the Chinese 
Government, and are made in its name and for its account. 

The bonds shall be sealed and countersigned by the Bank or by its agents In 
the countries where the issue is to be made. 

All details necessary for the prospectus, or relating to the payment of inter- 
est and to the repayment of the principal of the loan, which may not have been 
fixed explicitly by the present contract, shall be arranged by the Bank, after 
having consulted with the Chinese Ministers accredited to the countries where 
the issue is to be made. 

The Bank is authorized to publish the prospectus of the loan as soon as 
possible after the signing of the present contract. 

The Chinese Government shall give instructions to its representatives ac- 
credited to the countries where the issue is to be made, that they shall sign 
the loan prospectus and that they shall give their co-operation to the Bank 
in all questions which may call for it. 

The first series, of which the amount shall not be less than 10,000,000 roubles 
(ten million) or its equivalent in French francs, Belgian francs, pounds 
sterling, or gold dollars, according to Article II, shall be issued as soon as 
possible after the ratification of the present contract. The date of issue of 
the subsequent series, which shall not he less than one-fifth of the total 
amount of the loan, shall be fixed by mutual agreement between the Bank 
and the Chinese Government in such a way that the work and the purchase 
of materials provided for under the present contract shall suffer no delay. 
The Bank may nevertheless float the whole loan in one single issue if it 
deems it opportune to do so, on so advising in advance the Chinese Govern- 
ment, which will consent thereto. 

The subscription shall be opened by the Bank, in Europe, in America, 
if an issue is made in that country,, and in China, under equivalent condi- 
tions. Preference shall be given to the subscription of the Chinese Govern- 
ment on condition that this subscription is delivered to the Bank at least 
four days before the publication of the prospectus. 

The Bank shall make known to the Chinese Government the date of the 
publication of the prospectus of the issue, at least seven days in advance. 



174 


FOEJIIGIT BEIiAlTONS 


If before the publication of the prospectus for the issue of the loan, the 
present state of war should not have ceased in Europe, or if in consequence 
of this crisis, the state of the markets should render the issue impossible, 
or if a political or financial crisis in China should sexuously affect the price 
of Chinese Government securities already existing, the Bank shall be granted 
a reasonable extension of time for the execution of the present contract. If 
the loan has not been issued during this extension of time, the length of 
which shall have been fiLsed by mutual consent, the present contract shall 
become null and void. 

Ajbtioie X. Lo9t Bonds, — If any of the bonds issued for the present loan is 
lost, stolen or destroyed, the Bank will so advise the Minister of Communica- 
tions as well as the Chinese Minister accredited to the country where such 
bond was issued. 

The latter shall authorize the Bank to publish in the newspapers the notice 
that all payment on this bond is suspended, and to take all such measures 
as may be necessary under the circumstances in conformity with the laws 
and usages of the country. 

If the bond has been destroyed, or if the lost or stolen bond has not 
been recovered within the period fixed by the Bank, the Chinese Minister 
accredited to the country shall aflSx his seal to a duplicate of the bond, of 
the same nominal value, and shall deliver it to the Bank in its capacity 
as representative of the owner of the bond lost, stolen or destroyed. 

The Bank shall pay all expenses in behalf of the owner of the bond. 

ABTiciiE XI. Exemption from Taxes , — All bonds, all coupons, and all pay- 
ments made or received in connection with the *service of the present loan, 
shall be exempt from all Chinese imposts and taxes during the term of 
the loan. 

Abticxe XII. The Bank Trustee , — ^The Bank may act as trustee for the 
bondholders of the present loan. 

It may undertake to represent them, and shall have the power to act in 
their name, in aU negotiations which may be necessary with the Chinese 
Government, or in any discussion concerning the present loan. 

ABTicnB XIII. Deposit of Proceeds from the Loan — Accounts of the Rail- 
road . — ^The Bank shall deposit the proceeds of the loan to the credit of an 
account designated the “Chinese Government 5% Gold Loan of 1916 for the 
Pin-hei Railway,” which shall be opened by the Bank in Europe, and in 
America if a block of the issue is placed in that country. 

The proceeds of the loan shall be deposited to the credit of this account 
by successive payments, according to the conditions granted to subscribers 
to the loan. 

The credit balance of this account shall bear Interest to the profiit of 
th Chinese Government at the rate of 3% (three per cent) yearly. As to 
the sums transferred to China, and not yet used, they shall bear interest 
at the best rate given by the Bank on ordinary deposits. 

The Bank shall hold at the disposal of the director general the net proceeds 
of the loan plus the accrued interest, having care however to reserve the 
amount necessary for the payment of the interest coupon and the commission 
of the Bank on these coupons during the period of construction of the line, 
which is estimated at five years, but which will be definitely fixed after the 
completion of the surveys. A sufacient sum shall also be left in Europe and in 
America, if issue has been made in that country, for all payments for mate- 
rial and for staff. 

The director general may transfer to China at his pleasure the funds of the 
loan, after having come to an agreement with the Bank on the subject. Trans- 
fers made during the course of a week cannot exceed £75,000 (seventy five 
thousand pounds sterling) without the consent of the Bank. 

Transfers shall be made through the Bank, and the amount thereof shall be 
deposited to the credit of a “ Pin-Hei Railway ** account at Harbin, on the re- 
sponsibility of the Bank. 

According to the table of estimates drawn up by the engineer in chief for 
expenditures to be made in China during the month or months following, the 
director general shall determine the amount of the sum to be drawn from the 
account, which sum shall be deposited to a rouble account for construction, 
which account shall be opened by the Bank in Harbin, or at such other branch 
of the Bank in North Manchuria as it may designate. 

This transfer from the Pln-Hei Railway account to the construction account 
fihaU be made under the care of the director general, and through the Bank. It 



OHIITA 


175 


shall not involve the sums required for more than one month, unless the Bank 
consents thereto. The construction account shall bear interest at a rate fixed 
according to the rules in force for this category of current accounts. 

Withdrawals from the constniction account shall be made in sums sufficient 
to meet expenses in proportion to the progress of the railway line, by drafts 
addressed to the Bank, which drafts shall be signed by the director general and 
the engineer in chief jointly. 

The amount of these drafts shall be turned over to an agent designated by 
the director general, against the receipt of the agent, and on the responsibility 
of the director general. This agent shall not part with these funds save upon 
a requisition signed jointly by the dii’eetor general and the engineer in cldet 
The director general and engineer in chief shall have the most absolute right 
of control over all the expenditures and receipts of the railroad. 

During the term of the loan, the accounts of the railroad shall be kept in 
Chinese and in Russian, according to the modem methods applied to Chinese 
railroads built with the aid of foreign capital, and under the supervision of a 
Russian chief accountant engaged by mutual consent of the director general 
and the Bank, and placed under the orders of the engineer in chief. The chief 
accountant shall draw up a schedule of the European staff which he thinks 
necessary for the proper conduct of his department, and shall submit it for the 
approval of the director general through the engineer in chief. The director 
general reserves the right to .select and engage the Chinese staff required by the 
chief accountant, and shall place them under the latter’s orders. 

The administration of the railroad shall publish annually, at the close of the 
accounting year, a report in Chinese, Russian and French, showing receipts and 
expenses of operation of the railway. The public shall have access to this re- 
port on request. 

Article XIV. Eventual I) elicit or Surplus . — If the proceeds of the loan, aug- 
mented by the interest, are not sufficient to complete the construction and 
equipment of the railroad, the Rank shall issue a new series of the loan for the 
amount necessary for the entire completion of the line, and for putting it into 
definitive operation, advising the Chinese government thereof in advance. The 
interest on the new series, as also the price, shall he the same as for the pres- 
ent loan. 

The new series shall enjoy the same guaranties, and shall he placed in all 
respects on the same footing as the series of the present loan. 

If, however, the Chinese Government shonld have J)ona -fide funds available, 
these funds might be employed for the continuation, without interruption, of 
the construction work. These funds would be considered as forming part of 
the capital of the railway, but the dividends to which this capital would be 
entitled may not in any way impair the stipulation which assure the payment 
of interests and repayment of capital of the present loan. 

If after the entire completion and equipment of the railway, there should 
remain a surplus of unused funds available, this surplus would be consigned to 
the Bank, and would constitute a reserve fund for the payment with which the 
Government is charged by reason of the present contract, or for the work of 
improving or repairing the line. 

Abtioue XV. Construction , — Surveys for the construction of the line shaU 
be begun in the shortest time possible after the signature of the contract, and 
the work undertaken as soon as possible after the issne of the loan. 

The length of the line shall be definitely fixed after the completion of the 
surveys. The width of the track must be the same as that of the Chinese 
Eastern Railway. 

The Chinese Government shall name a director general for the line. 

This functionary shall have permanent residence in the immeffiate vicinity 
of the work. He shall have full power to act in the name and for the ac- 
count of the Chinese Government within the scope of the present contract. 
The engineer in chief shall be snbordinate to bim, or, in his absence, to his 
duly authorized representative. The compensation of the director genferal 
shall be fixed by the Chinese Government in agreement with the Bank, and 
devolve upon the railroad. 

The work of construction of the line i^all be carried on under the head 
directorship of the director generaL 

director general and the Bank shall choose by mutual agreement and 
conscienHon^y, an engineer in chief who must be a Russian, experienced and 
honest 



176 


J’OItEIGK EEIATIONS 


The engineer in chief shall settle upon the surveys, plans, routes and esti- 
mates for the line, direct the execution of all the work, and order materials, 
tools and equipment necessary to insure regular operation. IIoweTer, all these 
operations shall be submitted in advance for the approval of the director general. 

The director general shall fix the amount of the salary of the engineer in 
chief after agreeing upon it with the Bank 

The engineer in chief shall prepare a sciiodule of European staff necessary 
for the construction work, and shall submit it for the approval of the director 
general. This staff, which includes the chief accountant, chiefs of the various 
departments, the chiefs of sections, etc., shall be engaged with the assistance 
of the Bank, which shall place them under the orders of the engineer in chief. 

In whatever concerns the Chinese staff, technical or otherwise, the director 
general shall reserve the right to choose it. He shall place it under the orders 
of the engineer in chief. No employee, Chinese or European, shall be engaged 
without the consent of the director general. 

It is understood that Chinese subjects, who have made special studies or have 
acquired sufficient practical knowledge may be recommended to the engineer 
in chief by the director general, who will employ them under the same condi- 
tions as the European employees ; but it will be necessary first to send them to 
the engineer in chief, who, assisted by the technical delegate of the director 
general, shall examine into their capacities. 

The director general may require the dismissal of any of the non-technical 
staff for serious faults. As for the technical staff and all the European staff, 
the director general may demand their dismissal from the engineer in chief, who 
must give effect to this demand if the reason indicated is found to be sufficient. 

To discharge or dismiss the engineer in chief, the director general and the 
Bank must first agree upon it. 

The European staff must in general show the highest respect for the director 
general and his special representatives. They should respect the local authori- 
ties and not mix in the affairs of the country, "^fhey must also respect the man- 
ners and customs of the Chinese in order to live on terms of good understanding 
with the inhabitants. 

The intention of the contracting parties in inserting the foregoing stipulations 
is to safeguard the prestige of the director general, and to assure the regular 
progress of the work. 

The director general also reserves the right, in agx*eement with the Bank, to dele- 
gate upon the work one or more special representatives furnished with full powers. 
The compensation of these representatives shall devolve upon the railway. 

The Bank engages to come to an agreement with the Chinese Eastern Rail- 
way with a view to having a special tariff of 50 (fifty) per cent reduction 
from the usual rate for the transportation by that road of materials for con- 
structing the Pin-Hei Road. 

This advantage, however, will not extend to that; part of tlie Chinese Eastern 
Railway between Kwanchengtze and Harbin. 

Article XVI. Supplies . — ^The Bank shall act in the capacity of agent of the 
railway, during the period of construction, for the purchase of all materials, 
supplies and merchandise, tools and raw materials serving for the manufacture 
of materials in China, which have to be imported from abroad. 

With a view to encouraging Chinese industry, at equal price and quality pref- 
erence Shan be given to Chinese supplies and materials manufactured in China, 
as against those of foreign production. No commission shall bo paid on pur- 
chases of Chinese supplies and materials. 

For all orders and purchases made abroad the Bank shall call for tenders 
with a view to obtaining the most advantageous conditions, especially those re- 
lating to quality and price. On equal terms, goods of Russian production shall 
be accepted by preference, if the engineer in chief recommends them to the 
director general; otherwise, and in general, supplies of Russian product‘on or of 
the countries in which an issue of the loan is made, shall be placed on an equal 
footing and even enjoy on equal terms a preference over products of any other 
foreign origin. The orders as well as the specifications for the work shall bo made 
by the engineer in chief and submitted for the approval of the director geuerah 

Accounts of sums paid for supplies of materials and expenses of any kind 
paid in Europe shall he sent, with all vouchers supporting them, every three 
months to the general management for approval. The Bank shall add to the 
net original cost of supplies bought in Europe and America a commission of 5% 
(five per cent) as remuneration for its seiwices as agent 



CHUfTA 


177 


All orders made through the Bank for the railway shall he exempt from all 
customs duties, taxes and likin taxes on their entry into or transit through 
Chinese territory. 

Nevertheless this stipulation shall not impair the right of the Chinese Gov- 
ernment hereafter to levy upon these orders such future taxes as shall he paid 
upon those destined for the construction and equipment of all other railways 
of the country, without distinction. 

Aeticle XVII, Operation during Gonstruetion^ — ^As fast as the different sec- 
tions of the line are finished, the director general and the engineer in chief shall 
turn over the operation of such section or sections to a Russian chief of opera- 
tion, who will be engaged by mutual agreement between the director general 
and the Bank, and placed under the orders of the engineer in chief ; and they 
will in general, by nlutual agreement, take such steps as are necessary for 
operating them. 

Abticle XVIII. Branch Lines and Future Extensions , — ^When the Chinese 
Government shall deem it necessary or desirable to build branch lines connect- 
ing with this railway, or to extend this line, it shall do so from its own funds, 
that is, from funds proceeding from bona fide Chinese sources. 

If it desires to call in foreign capital, it agrees to come to an agreement by 
preference with the Bank and to give it an option on the contracts relative to 
this enterprise, on the same terms as those which might be offered by other 
banks or foreign companies. 

Article XIX. Definitive Operation . — ^The operation and administration of the 
railway shall be under the head directorship of the director general. 

When the construction of the railway has been entirely completed, the duties 
of the engineer in chief shall be regarded as finished, and the director general, 
in agreement with the Bank must engage a Russian engineer who will be in 
charge of the operation of the railroad as well as of the maintenance of the 
line, and its materials and accessories. This engineer will be subordinate to 
the director general or, during his absence, to his duly authorized representa- 
tive. The director general shall fix the terms of his engagement 

The engineer in chief, by agreement with the director general, shall engage 
the necessary European staff such as chief of operation, chief of line and 
works, chief of traction, chief of traffic. 

In order to discharge or dismiss the engineer in chief, the director general 
and the Bank must first agree. 

All receipts and expenditures must be placed regularly to the account of the 
railway with the Russo-Asiatic Bank, the interest upon the account being ficxed 
at the best rate given by the Bank for deposits on sight or fixed deposits, as 
the case may be. 

All the expenses for the operation and upkeep of the line shall be paid from 
the receipts and the various profits of the line, after which the net profits shall 
be directly applied to the discharge of the present loan. 

If after payment of these expenses and after making provision for the pay- 
ment of interest on the bonds and for the amortization of the principal ac- 
cording to the amortization table annexed to the present contract, there remain 
funds unused or available for other purposes, these funds shall be placed at 
the disposal of the Chinese Government. 

The chief accountant general, who shall be of Russian nationality, shall be 
named by the director general in agreement with the engineer in chief. He 
shall sign, Jointly with the representative of the director general all drafts and 
documents of account of every kind. 

The representative of the director general and the engineer in chief shall 
have the most absolute right of control over the receipts and expenditures of 
the railway. 

Whenever it is necessary to name technical agents for the railway, or to 
define their functions, or else to decide on their dismissal, the director general 
must consult the engineer in chief and act in agreement with him. 

In case of disagreement between the engineer in chief and the director gen- 
eral the difference shall be submitted to the Minister of Communications, who 
wiU decide the question in the last resort. 

The protection of the railway shall be assured by a force of Chinese police, 
commanded, by Chinese officers, whose wages and maintenance shall be borne 
entirely by' the railway as part of its own cost of construction and main- 
tenance. The number of these guards shall be fixed by the director general In 
agreement with the Bank. 



178 


FOREIGir EELATIONS 


If the protection of the railway should necessitate employing further military 
forces belonging either to the Chinese Central Government or to the Provincial 
Government, such protection must be ashed by the railway and granted 
promptly. The said nailitary forces shall then be maintained at the expense 
either of the Chinese Central Government or of the Provincial Government. 

In case of war with any nation whatsoever, or of a revolution in China, the 
transport of troops, munitions, and supplies of the Chinese army shall have 
precedence over all other commercial transportation. It shall be conducted in 
conformity with the instructions of the director general. It shall furthermore 
be forbidden to transport anything which might be of a character injurious to 
the Chinese Government 

Supplies . — ^It is understood and agreed that after the completion of the 
construction of the line, the Bank shall have a right of preference to conduct 
business as agent, during the term of the loan, for everything in regard to the 
supply of materials and raw materials which the administration may require, 
on terms which shall be agreed upon later by common consent. These condi- 
tions shall not be more favorable to the Bank than those stipulated under 
Article XVI. 

In case there shall be a question of giving one or more foreign houses in the 
capacity of agents an order for any supplies for operation of the line, the Bank 
shall have under equal conditions the preference over others. 

Article XX. Right of Delegation^ Substitution and Transfer . — ^The Bank 
may designate one or more banks in China or abroad to execute jointly with it, 
or in its stead, all or part of the financial service with which it is entrusted by 
virtue of the present contract. 

The Bank shall have the right, subject to all the obligations which it has 
undertaken by the present contract, to transfer or delegate aU or part of its 
rights, powers and advantages to any other company or group, or to agents or 
administrators, with power of substitution in whole or in part. 

It is clearly understood that these companies or groups to which delegation 
or substitution is effected by application of the preceding paragraph must be 
of Russian nationality, and that these transfers of rights shall be subject to the 
approval of the Minister of Communications. 

Article XXI. Arbitration . — ^In case of conflict or of divergence of opinion 
between the Bank or its delegates and the director general on the subject of 
the execution of the present contract, these conflicts or differences of opinion 
shall be submitted to the decision of two arbitrators, one chosen by the Chinese 
Government, the other by the Bank. In case of disagreement, the two arbi- 
trators shall designate a third arbitrator, who shall decide in the last resort 

Article XXII. Executory Formulas . — ^The present contract must be sanc- 
tioned by Presidential decree. 

The promulgation of the decree shall be officially confirmed without delay 
by the Wai Chia Pu to his excellency the Minister of Russia at Peking. 

It is made in four copies, each comprising the French text and the Chinese 
text; two copies shall be kept by the Chinese Government, and two by the 
Bank. 

In case of doubt or difference as to the interpretation of the present contract, 
the French text alone shall govern. 

P^ing, March 27, 1916 (27th day of the third month of the fifth year of the 
Chinese Republic). 

Liang Tun-Yen 
Mim4^t€r of Communications ^ 
Chow_ Hsueh-Hsi 
Minister of Finance 
L. DE Hotee 


PUeNo. 893.77/1527 

The Secretary of State to Minister Beimoh 

tTelegram.] 

Depahtment op State, 

Washmgton, May 1916 f If, p. m. 

^ Americaji Locomotive Sales Corporation advised by cable of de- 
sire of tbe Ministry of Communications to obtain four year loan of 



OHIN-A 


179 


one million dollars upon security of total revenue. Mr. Muchnic 
states bankers disposed to make loan if security satisfactory. He re- 
quests your opinion of value of security, also confirmation of reported 
purpose of loan to complete Peking-Kalgan Railway extension. 

Lansotg 

FUe No. a93.77/1530 


Minister Reinsch to the Secretary of State 

[Telegraitt] 

American Legation, 
Peking^ May 7^, 1916^ 1:60 j>. m. 

Your telegram of May 6, 4 p. m. ^ In^ view of the fact that sur- 
plus revenue of Ministry of Communication last year was eight mil- 
lion dollars silver from railways and that Ministry has always 
promptly met its obligations, loan in question would seem to be am- 
ply secured. Although more in the nature of a general credit than 
a specific lien, yet it amounts to secondary lien upon the entire rail- 
wayj post and telegraph revenue of China. The purpose of the loan 
Minister of Communication stated to me to be for the cost of exten- 
sions of the service both on railway and telegraph stock. 

Eeinsch 


File No. 893.77/1542 


Minister Reinsch to the Secretary of State 


No. 1082 American Legation, 

Peking^ May 17^ 1916. 

Sir: I have the honor to send a report, in a preliminary way, 
upon an agreement for a railway concession concluded to-day be- 
tween the Chinese Government, through H. E. Tsao Ju-lim Minister 
of Communications, and Mr. W. F. Carey, of Siems-Carey and 
Company, Ltd. A more complete report will follow by the next 
mail. 

Negotiations have been proceeding for some time between the 
Minister of Communications and Mr. Carey. Mr. Liang Tun-yen, 
the former Minister, who had always been favorable to granting a 
concession to Americans, had designated Dr. C. C. Wang to carry 
on the preliminary negotiations; the question of lines, the construc- 
tion of which might profitably be undertaken, was discussed with 
him. Upon the assumption ox office by H. E. Tsao Ju-lin, he im- 
mediately interested himself personally in the negotiations, which 
after a careful discussion of every point, were brought to a succes- 
ful conclusion to-day in the form of an exchange of letters between 
the Ministry of Communications and Mr. Carey, in which the con- 
ditions of the definitive contract are laid down and a^eed upon. 

The main conditions of the contract are as follows : Railway lines 
aggregating fifteen hundred miles are to be constructed and financed 
by the American corporation. The principal lines axe: (1) from 
Kwei-Sui in north ^ansi, up through the Hwang-Ho valley to 
Lan-Chow in Kansu; (2) a line connecting a number of important 



180 


SOKBIGIf EELAHOKa 


interior trade marts, between Kai-feng in Honan and Suchow in 
Anhwei; (3) from Hanchow to Wen-chow in Chekiang Province. 
It is agreed that should obstacles arise to prevent the construction of 
these lines, an equal mileage wiU be assigned elsewhere. The Amer- 
ican interests are to furnish the capital necessary for the construc- 
tion of these lines, providing that not less than $1,000,000 nor more 
th a n $10,000,000 shall be furnished per annum, according to the state 
of the market. The construction of the railways is to be carried out 
under supervision of an American construction company. The 
American interests are to receive 8 per cent commission on the cost 
of materials. With respect to the latter, a preferenw is to be given 
to Chinese and American materials, provided the price is not higher 
than that of materials from other sources. When construction is 
completed, the railways are to be operated under an America,n en- 
gineer in chief, traffic manager, and auditor; and during the life of 
the bonds, which run for fifty years, the American corporation is to 
receive participation in the income of the railways to the extent of 
one-quarter of the net revenue, after a deduction of aU charges, ex- 
penses, and betterment funds. 

The contract constitutes a new departure in the practice of Chi- 
nese railway agreements on two very important points. The method 
of putting the construction in charge or an expert company, which 
is to receive a commission as its remuneration, has never been used 
in China, although common elsewhere, and proposed here first by 
Lord ffrench of the Pauling firm, and then by the representative of 
the Pearsons. The Chinese have hitherto not admitted that they 
had anything to gain by employing expert talent in this capacity. 
The former Minister of Communications, H. E. Chou Tzu-chi, in 
1914 had practically accepted the method, when his place was taken 
by H. E. Liang Tun-yen, who was decidedly opposed to it. Towards 
the end of his term, he became more ready to discuss the matter. 
His imccessor, H. E. Tsao Ju-lin, the present Minister, takes the 
position that it wiU be advantageous for the Chinese, not only to 
engage the best foreign expert knowledge obtainable in the manage- 
ment of railway con^ruction, but he is also in favor of interesting 
foreign capital more permanently in the welfare of Chinese railway 
enterprises, by giving them a participating interest, as well as the 
control of the technical management, in the operation of railways. 
It is believed, by thus identifying progressive foreign interests with 
the welfare of a certain railway line, the advantage will extend, not 
only to the development of the whole region served by the railway, 
and aU its resources and activities. There has hitherto been no such 
concession policy of developing railway traffic through the introduc- 
tion of improvements throughout the whole region. 

The preliminary agreement also provides that should the method 
of construction prove more favorable than that hitherto employed 
on the Chinese railways, and should the method of operation prove 
more profitable, a grant of a further fifteen hundred miles shall then 
be made upon the same conditions. The total investment contem- 
plated thus aggregates $75,000,01)0 or double the amount if the enter- 
prise is as succes^l as is anticipated. 

The concession offers an unequaled opportunity for the participa- 
tion of American expertship, energy, and capital in Chinese railway 



CBXbTA 


181 


building. Undei the terms of the contract, the American manage- 
ment will actually have a free hand to introduce efficient and scien- 
tific means of management, and a real opportunity will be afforded 
to show what Americans, trained in handling similar problems at 
home, can do by way of giving China a well managed and efficient 
railway system. 

I have [etc.] 

Paul S. Eeiistsoh 


FUe No. 893.77/1534 

Minuter Reinsch to the Secretary of State 

[Telegraia] 

American Legation, 
Peking^ May 23^ 1916, 

The Chinese Government has concluded preliminary contract 
with Carey for finance and construction of 1500 miles railway. 
Construction commission of 8%; American company also to have 
control over operation during life of bonds, 50 years, receiving 
one-fourth net earnings. The aOTeement is an impoitant departure 
in Chinese railway practice, indicating readiness to allow foreign 
capitalists greater share in control and proceeds, thus giving them 
a more direct continued interest in welfare of enterprise. Carey 
proceeding to ITew York. 

Eeinsoh 


FUe No. 893.77/1536 

The Acting Secretary of State to the American Group 

Department op State, 
WasMngton^ June 1916, 

Gentlemen: Eeferring to your letter of March 31, 1916, relative 
to the preliminary agreement signed in October, 1909, between the 
Viceroy of Manchuria and the Governor of Fen^ien on behalf 
of the Manchurian Administration and the American Group for 
the construction of a railway from Chinchow to Aigun through 
Tsitsihar and the possible infringement of the rights of the Ameri- 
can Group by a contract recently reported as having been nego- 
tiated by China with the Eusso- Asiatic Bank, I have to enclose 
herewith for your information copy of desmtch No. 1037 of April 
20, 1916, from the American Legation at Peking, with a copy of 
this last-mentioned loan contract. 

In this connection I have to say that the Department was informed 
on May 5 by the Legation at P^ing that the loan agreement above 
mentioned contemplates the possibility of raising money in the 
United States for the construction of the road and that Mr. Hugo 
Bryce, a representative of the Eusso- Asiatic Bank, who was then 
on his way to America, would stop at Petrograd to discuss the 
matter with the proper authorities there. It is also understood by 


i^For. Rd. 1910, pp. 231-283. 
106413'*— EE 1916 ^IT 




182 


FOEBIQir BEIATIONS 


the Department that Mr. Gfregory, while m route from China to 
the United States, stopped at Petrograd for the same purpose. The 
Department would be glad to be informed whether a satisfactory 
understanding has been reached at Petrograd with reference to the 
participation of American bankers in furnishing the necessary 
funds under this contract and whether the American Group de- 
sires that any protest be made in its bdialf to the Chinese 
Government. 

I am [etc.] 

For the Acting Secretary of State: 

Alvbt a. Adeb 


EUe No. 893.TT/1S41 

The American Group to the Secretary of Staie 

New Yoke Citt, Jwne S, 1916. 

Dear Sir: We are in receipt of your letter of June 2 in which 
reference is made to ours of March 31, and enclosing a copy of 
Despatch No. 1037 dated April 20, 1916 from the American Lega- 
tion at Peking as well as a copy of the loan contract with me 
Russo- AsiaticBank for the construction of a railway from Harbin 
to Mergen to be known as the Pin-Hei Line. 

In reply to the second paragraph of your communication, we 
advise that we have no knowledge of any negotiations with Ameri- 
can bankers with respect to their participation in the financing of 
this contract, and that our position with respect to our rights under 
the Chinchow-Aigun Railway agreement remains as stated in our 
letter of March 31 to the Department. We have no desire to 
suggest that a protest to the Chinese Government be made at this 
time on our behalf, and presume that the Department of State 
.will make one if, for reasons of State, the Department ^ould con- 
sider it to be necessary or advisable. 

Your obedient servants, 

The Ambeioan Grotep, 
By J. P. Morgan and Co. 


inie No. 898.77/1648 

Minister Reinsch to the Secretary of State 

No. 1118 Ameeioan Legation, 

Peking, Jwne 14, 1916. 

Sir: Supplementing my despatches Nos. 1080 and 1082 of May 
17 last, and referring to my telegram of June 13, 8 p. m. I have 
the honor to enclose herewith the translation of a note, dated the 
10th instant, with which ihe Foreign Office transmitted to the Le- 
gation a copy of the Englidi text of an agreement and two supple- 
mentary agreements, with respect to the construction of certain rail- 
ways, between the Ministry of Communications and Mr. W. F. 
Carey, representing the Siems-Carey Company. 

I have [etc.] 


Paidl S. BEiNsaa 



CHTfrA 


183 


rindosTire — Translation] 

The Acting Mirdster of Foreign Affairs to the American Minister 

Ministey of Foeeign Affairs, 

Peking, June 10, 1916. 

Sir: We are in receipt of a despatch from the Ministry of Communications 
to the effect that the said Ministry has made an agreement with Messrs. 
Siems and Carey with reference to the construction of railways and stating 
that the said agreement was duly signed by the Minister of Communications 
and by the representative of Siems and Carey on the 17th of May (1916). 

We now have the honor to transmit a copy of the English text of the agree- 
ment and of the two supplementary agreements in order that you may inspect 
the same and put them on record, 

A necessary despatch. 

Seal op the Wai Chiao Pu 


[Subinclosnre] 

The Minister of Coinmumcations to Siems d Carey 

Peking, May 17, 1916. 

Gentlemen: We herewith acknowledge receipt of your letter bearing date 
of May 15, 1916, by which, for the purpose of carrying out verbal agree- 
ments resulting from negotiations had between us respecting the building of 
steam railroads in the Republic of China, you have submitted your proposi- 
tion for our acceptance. 

We have given the matter full consideration and in behalf of the Republic 
of China we hereby accept the same and agree as follows : 

1. The Republic of China shall locate, build, and work steam railroads in 
China, the aggregate of which shall be fifteen hundred (1,500) miles in length. 
We specially pledge to build said lines between the following points and such 
intermediate points as may mutually be considered advisable, namely: 


From— 

Province. 

To— 

Province. 


“RrimaTi . - 

TVanning _ _ 

Kwaiii?si. 

Eansiih- 

Eansub. 

: Kwangtung. 

Chekiang. 

Fenjci^QTig 

ShnTisi 

NinghRia . 

Nmghsia 

Kansnh __ _ 

Lauchowfti - 

Ghungchow 

XwaTigtnng . _ 

Ln TTwei . _ 

Hangdiow 

Chekiang 

Wennhow 





2. If after examination it shall be mutually decided between us that any 
part of said railroad locations shall not be desirable, such undesirable parts 
may be abandoned; but in that event the Government of China will then lo- 
cate and construct an equal amount of mileage of railroads upon other loca- 
tions within said Republic. The locations of the additional lines to complete the 
total mileage above stipulated to be decided by mutual agreement between us. 

3. The said Republic reserves the right at or before the time of the comple- 
tion of the above-mentioned 1500 miles of railroad, to choose one expert 
railroad civil engineer, in which event you shall choose one, and the two 
thus chosen shall choose a third, to be known as the “ Board of Engineers’*, 
and said board shall determine whether the work then being done, or there- 
tofore done, is being or has been economically performed, and if the majority 
of said board shall decide that the work has been and is being done in an 
economical manner under this agreement as compared with the cost of con- 
struction of other Chinese railroads, all things considered, then the said Repub- 
lic obligates itself to construct an additional 1500 miles of railway within said 
Republic, to be located by the mutual consent of the parties hereto ; and aU and 
singular the provisions of this agreement shall extend and apply to the said 
additional mileage of railroad in the same maimer and to the same effect and 
purpose as tfiipugh said additional mileage had been originally made part 
of and included in this agreement; with this sole exception,— that the Interest 
rate and discount to be charged upon the bonds to be issued by the said Re- 




184 


rOREIGH BEIiATIOKS 


public for the construction of said additional 1500 miles of railroad shall 
not be higher than the prevailing interest rate and discount for other 
Chinese railway bonds at that tima 

If the said Republic shall build any extensions or branches of said first men- 
tioned 1500 miles, the same shall be done under and pursuant to the provi- 
sions of this contract as though originally included herein, excepting that the 
mileage thereof shall be reckoned a part of the aforesaid additional 1500 miles 
and subject to the above exception respecting the interest rate and discount 
on bonds to be issued therefor. 

4. For the purpose of providing the money with which to construct, equip, 
and operate said railroads the said Republic shall, and it hereby obli- 
gates itself to, issue gold bonds, in usual form, in the sum of one million ($1,- 
000,000.00) Dollars per year in each and every year from the time that this 
contract shall take effect, as herein provided, until all of said railroads in- 
cluded in or contemplated by this contract shall have been fully completed, 
equipped and put into practical operation, and you shall obligate yourselves 
to sell said one million ($1,000,000.00) Dollars of bonds per year for and during 
said term pursuant to the provisions of Paragraph 5 of this contract. But if 
in any year of said period said Republic shall be satisfied with the market 
value of said bonds as fixed by the quotation of the New York Stock Exchange, 
for the time being, for Chinese railroad bonds, so that it shall appear to be to 
the advantage of said Republic to issue additional bonds and increase the 
activity in building said railroads, then and in any such case said Republic 
shall issue an additional one million ($1,000,000.00) Dollars of said bonds for 
that year, and by mutual consent of the parties hereto said Republic may issue 
an aggregate of not to exceed ten million ($10,000,000.00) Dollars of said 
bonds in any one year of said period and in as many years during the life of 
this contract as may be mutually agreed upon. 

All bonds issued in pursuance hereof shall bear interest at the rate of five 
(5) per centum per annum, payable semi-annually, and each issue of bonds 
shall be made payable by their terms fifty (50) years from and after the date 
thereof. 

As to the form of the bonds it is to be agreed upon by the Chinese Govern- 
ment or by the Chinese Minister in Washington and yourselves or your as- 
signs as soon as possible after the signature of this agreement, but if here- 
after the money markets in New York or other countries require any modi- 
fication of the form of the bonds, except in ansrthing that affects the amount 
of the loan and the liability of the Chinese Government which are not to 
be touched at all, such slight modifications may be made to meet the views of 
the markets by you or your assigns in consultation with the Chinese Minister 
in Washington. Any modifications are to be reported at once by you or your 
assigns to the Chinese Government 

The bonds are to be engraved entirely in the English language and shall 
bear a facsimile of the signature of the Minister of Communications and of 
his seal of office in order to dispense with the necessity of signing them all 
in person; but the Chinese Minister in Washington shall, previous to the 
issue of any bonds, put his seal upon each bond with a facsimile of his signa- 
ture as a proof that the issue and sale of the bonds are duly authorized and 
binding upon the Chinese Government. 

Such bonds are to be numbered consecutively and as many bonds as may be 
needed are to be properly engraved under the supervision of yourselves or 
your assigns, and after they are sealed by the Chinese Minister in Washington 
as heretofore provided they are to be countersigned by you or your assigns. 

If any of the bonds herein mentioned are lost or destroyed, a reissue of 
any thereof is to be made in the amounts respectively called for by such lost 
or destroyed bonds, but proper proof of the loss or destruction must be given 
in the usual form to you or your assigns and the Chinese Minister in Wash- 
ington for examination and record, and the requisite guaranty is to be obtained 
by you or yoim assigns from the respective claimants concerned who shall 
defray all expenses connected with such reissue of bonds lost or destroyed, 
and who under the said guaranty shall undertake to Indemnify the Chinese 
Government and/or you and your assigns for any loss sustained by reason of 
the issue of bonds in the place of the bonds lost or destroyed. 

No payment of the principal of any such issue of bonds shall be made until 
after the expiration of twenty-five (25) years from and after the date thereof, 
and the bonds shall so provide. But payment of principal shall commence on 
the first day of the twenty-sixth (26th) year from and after the date of issue 



OHOTA 


185 


and shall thence be made and shall continue to the full maturity thereof at 
the rate of four (4) per centum of the par value thereof per year, and in each 
and every year of said principal paying period the said Republic shall pay 
and retire, by lots in the usual manner, four (4) per centum of the face value 
of such issue, and the right to pay and retire in that manner shall be reserved 
and expressed upon the face of all bonds of each and every said issue, and the 
payment of the principal of each and every issue of said bonds shall be made 
in that manner. 

It is the intention that the principal paying period of each issue of bonds 
shall not begin to run until the beginning of the twenty-sixth (26th) year 
from and after the date thereof. 

5. The above bonds to be sold by you at the New York Stock Exchange 
market rate for Chinese railroad securities for the time being, from which 
you shall be allowed and deducted a banker’s or broker’s comm.ssion of five 
(5) per centum of the par value of bonds for selling, which shall represent 
all expenses in connection with the issue of said bonds, such as underwriting, 
commission and brokerage, telegraph charges, advertising, postage, engraving 
and printing of prospectus and bonds, stamp and legal fees. 

6. You shall have charge of and direct the work of locating, surveying, erect- 
ing water tanks and buildings of all kinds, constructing and equipping all 
railroads included in or contemplated by th s contract, and also of buying the 
materials, rolling stock, machinery, tools, appliances, and equipment and fur- 
nishings therefor and installing the same. And you shall be paid for your 
services therefor a sum equal to five (5) per centum of the aggregate amount 
of all purchases made in behalf of said railroad, excepting purchases of land 
for any purpose, in each and every year from the time that this contract shall 
take effect, until the last of said bonds have been fully paid. The said rail- 
roads, and all construction, surveys, locations, equipment, materials, rolling 
stock, machinery, tools, appliances, installations, commissions, wages, salaries, 
and everything whatsoever aforesaid, shall be paid from the proceeds of the 
sales of all of said bonds and said proceeds shall not be used or applied to any 
other use or purpose nor shall any part or portion thereof ; and it is expressly 
understood that the moneys derived from the sale of all of said bonds shall be 
deposited and kept in a responsible bank to be mutually des’gnated and agreed 
upon by us in advance, and the same shall be drawn and paid out from said 
bank for the uses and purposes herein expressed, and for no other uses or pur- 
poses whatsoever. 

In purchasing machinery and materials preference shall be given to those 
of American manufacture when price and quality are at least equal; but 
whenever it shall be possible to purchase suitable supplies and materials of 
Chinese manufacture, price and quality being at least equal, the same shall 
be given preference over those of American or other manufacture. 

It is further agreed that the Ministry of Communications shall secure and 
purchase any and all lands required for rights of way and/or other purposes 
in connection with the terms of this agreement ; that such land purchased shall 
be paid for from the proceeds of the loan, 

7. To secure payment of all of said bonds, issued or to be issued, said Re- 
public shall at the time that the first issue of said bonds shall be made, exe- 
cute and deliver to you a first trust mortgage upon said entire railroads, built 
or to be built, together with all rolling stock, equipment, real estate, machinery, 
buildings, tools, and all of the physical property connected with or appurtenant 
thereto on hand or to be added, in accordance with jthe forms of the American 
law which are customary and usual in such cases to sequre payment of said 
first issue of bonds and of all issues of bonds subsequently issued. The trus- 
tee to be selected and chosen by mutual agreement of the parties. 

Until said trust mortgage shall be executed in form, the provisions of this 
agreement in respect to the mortgage are to be construed and treated as of 
the same purport and effect as a mortgage customarily executed and delivered 
in the United States to a trustee, for the purpose of securing loans to and 
bonds issued upon railway properties. It is further agreed that If the finan- 
cial markets in the United States or elsewhere require the executiop of an- 
other deed or deeds or mortgage or mortgages at any time for the better pro- 
tection of the bonds, or require the appointment of another trustee under the 
American law, you shall discuss the same with the Minister of Communica- 
tions, who will arrange the same as the exigencies of the case may require. 
The expense of the appointment of another trustee in such case to be borne 
by you. 



186 


FOEJEIGK -BEIATTONS 


S. The executive h^ad of the railroads shall be a Chinese director general 
appointed by the Government, who shall be assisted by a chief engineer, who 
shall have charge of the engineering department ; a traffic manager, who shall 
have charge of the traffic and operating departments; and an auditor, who 
shall have charge of all matters usually pertaining to that office, and each 
shall be qualified by practical experience, shall be of approved ability and in- 
tegrity, shall be chosen, recommended and vouched for by j’^ou, and appointed 
by the director general if he shall approve of the character and qualifications 
of the person nominated; but if he shall not approve in any case, he shall 
call upon you for another recommendation for the office. In event the di- 
rector general shall consider any head of a department above mentioned unfit 
to act, he shall upon consultation and mutual agreement with you cause his 
dismissal. It being understood that all of the above heads of departments 
shall at all times be men recommended by you. And if yon shall subsequently 
discover that the standard of efficiency may be improved by substituting for 
any appointee another likewise recommended and vouched for, the incumbent 
shall be removed by the director general and the other substituted as above 
provided. 

On or before the twenty-fifth (25th) day of each month you shall render 
a lump sum estimate to the director general showing the funds required to 
meet the expenditures for the ensuing month, and upon approval of tlie di- 
rector general, he shall notify the auditor, who shall prepare and turn over 
to you a check for said amount in your favor. 

It is agreed that requisitions for equipment and material shall be submitted 
to the director general for his information and approval 

It is agreed that aU contracts contemplated to be let by you shall be ap- 
proved by the director general 

It is agreed that any check of twenty-five thousand ($25,000.00) Dollars or 
more shall be countersigned by the director general 

It is agreed that any and all emergency expenses which pertain to the work 
contemplated by this agreement, shall receive the approval of the director 
general 

It is further agreed that the rules of accounting shall he according to the 
rules prescribed by the Ministry of Communications. 

9. The salaries of all officers shall be fixed by mutual agreement between 
you and the Minister of Communications of China. 

10. Proper and correct books, showing all transactions of Income and ex- 
penditures in detail and by items, shall always be kept, and both parties shall 
always have access to and inspection thereof. 

11. The time within which work shall commence under this contract, bonds 
issued and secured, and preliminary organization effected, shall be within six 
(6) months from and after the date of acceptance hereof unless prevented by 
extraordinary conditions. 

12. The said Hepuhlic shall assist you in every way possible in obtaining 
and acquiring all necessary rights of way, railroad yards, station grounds, 
sidings, gravel and sand pits, rock qnarries, and other necessary concessions. 

13. All plans and estimates of construction shall be submitted to the Min- 
ister of Oommimications in advance for his information and approval, and 
said Republic may employ an inspector or inspectors to inspect all work as It 
progresses. And when the said railroads shall have been completed, you shall 
give notice thereof to the Minister of Communications in order that he may 
send his inspector, or inspectors, to decide whetlier the work has been done 
according to specifications, 

14. Your said proposal having been executed and submitted in both the 
Chinese and English languages, each being a true and correct translation of 
the other and being executed in triplicate in each of said languages, this 
acceptance thereof shall likewise he executed in the Chinese and English lan- 
guages, each being a true and correct translation of the other and in triplicate 
In each language. It is understood and agreed that in the event that difference 
or dispute shall at any time arise respecting the construction or meaning of 
either said proposal or this acceptance or any part of either, the English text 
shall prevail in determining such difference or dispute. One copy of the 
English and the CJhinese text of this agreement shall be held by the Ministry 
of Communications : one copy of the English and Chinese text by the Ministry 
of Foreign A ff ai r s and one copy of the English and Chinese text by Siems 
and Carey, 



CSHmA 


187 


15. It Is understood that yonr said proposal and this acceptance thereof, 
shall be constmed together and as one instrument, and that all and singular 
the provisions hereof shall extend and apply not only to you, the signers of 
said proposition, but to your and each of your heirs, executors, administrators 
and assignees, who shall be of American nationality. 

16. The said proposal ana this acceptance thereof are hereby made effective 
and binding upon the respective parties thereto, and the same shall be and 
continue in force from now henceforth according to the terms thereof. 

17. And it is further agreed that in the event that the parties hereto shall 
mutually decide that further details are required to more fully and truly 
express the true intents and purpose hereof, this agreement shall be reformed 
to include the same. 

In witness whereof, the Republic of China has caused this instrument to be 
signed and executed by its Minister of Communications acting by its authority 
and in its behalf, this 17th day of the fifth (5th) month of the fifth (5th) 
year of the Republic of China ; being the 17th day of May, 1916. 

The Republic of China, 

By (sealed & signed) H. B. Tsao Ju-lin, 

Its Minister of Comimmications 

The above proposition is accepted by the undersigned in full and detail. 

Seims & Cabex, 

Mat 17th, 1916. By W. P. Cabet 

Witness: Boy S. Anderson 


[Sublndofinre 2] 

The Minister of Comnvumcations to Siems da Carey 

Peking, May 17, 1916. 

Gentlemen: I have the honor to acknowledge receipt of your written com- 
munication, bearing date on this day, submitted by you as a supplement to be 
considered and construed to be a part of your proposition to the Republic of 
China, likewise dated on this day, respecting the building of steam railroads 
in said Republic, as fully to all intents and purposes as though set forth at 
length in your said original proposition. 

We have given the same full consideration, and in behalf of said Republic 
of China, I now, in my capacity of Minister of Communications of the Re- 
public of China and by authority and in behalf of said Republic, hereby accept 
the same and agree as follows : 

In addition to the payment to you by said Republic of a sum equal to five 
(5) per centum of the aggregate amount of all purchases made in behalf of 
said railroads (excepting purchases of land for any purpose) in said proposi- 
tion stipulated for your services therein mentioned, said Republic shall also pay 
to you a sum equal to eight (8) per centum of the aggregate amount of all 
other moneys expended for the construction of all of said railroads. As soon 
as any section thereof shall have been fully completed and put into commer- 
cial operation, then said eight (8) per centum shall cease upon such completed 
sections that are being commercially operated. Settlements and payments for 
both the five (5) per centum and the eight (8) per centum aforesaid, to be 
made at the end of each six (6) months from the date of the beginning of said 
work. And further, for handling and selling said bonds as in said proposition 
provided, as well as for the said services by you to be performed, twenty-five 
(25) per centum of the net profits derived from operating said railways, after 
paying all maintenance, operating and bond charges shall be paid yearly t{> 
you at the end of each fiscal year up to the time of the payment of the last 
of said bonds, when all your rights shall cease and this contract shall terminate. 
By the term “ bond charges " as above used, is meant the semi-annual interest 
on each issue of bonds during the first twenty-five (26) years from and after 
their date (during which time no payments of principal shall be made) and 
the semi-annual interest and four (4) per centum of the principal of each said 
issue to be paid in each and every year of the last twenty-five (25) years of 
the period for which said bonds are to run. 

It is further agreed that before any division of net profits shall be made 
in any year as herein provided, there shall be reserved and set aside out of 
the said annual net profits, a sum equal to five (5) per centum of said an- 



188 


FOREIGN RELATIONS 


nnal net profits for a replacement fund, and a separate fund shall always 
he maintained for that purpose; it is understood, however, that if at any 
time said replacement fund shall have accumulated a sum in excess of the 
actual and reasonable requirements of said fund, such excess, by our mutual 
consent, shall be divided between us, you to receive twenty-five (25) per 
centum thereof as above provided. 

It is further agreed that no commission whatsoever shall be paid to you 
upon the salaries of any officer mentioned in this agreement. 

Respectively yours. 

Republic or China, 

By (sealed and signed) Tsao Ju-lin, 

Its Minister of Gommnjfiications, 

The above proposition is accepted in full and in detail by the undersigned. 

SiEMS & Cabet, 

May 17, 1916, By W. F. Oabey 

Witness; Roy S. Anderson 


[Subinclosure 3] 

Supplementary Agreement 

This Supplementary Agreement is to be considered and construed to he a 
part of the proposition agreed to between the authorised representative of the 
Republic of China in the person of the Minister of Communications and 
Siems and Carey represented in the person of William Francis Carey, respect- 
ing the building of steam railroads in said Republic, bearing date on the 
day of the date hereof, as fully to all intents and purposes as though set 
forth at length therein, and is as follows: 

It is mutually agreed that all interest charges to be paid during the con- 
struction of any specified line shall be paid for from the proceeds of the loan. 

It is mutually agreed that there shall be paid no eight (8) per centum or 
five (5) per centum commissions upon the interest payments paid for out of 
the proceeds of the loan during the time of construction or at any other time. 

It is mutually agreed that there shall be no commission charged upon the 
money expended for the purchase of land. 

It is mutually agreed that inspection fees and incidental expenses connected 
with purchases which are not made upon the condition that such purchases 
shall be subject to inspection upon delivery in China shall be borne by Siems 
and Carey. 

It is further agreed that in time of war in China, said railroads and all 
employees thereof shall be subject to the rules of martial law and that 
said railroads shall receive half rates from the transportation of troops, 
munitions of war and all commissaries for war purposes. 

It is further agreed that the railroads shall transport Government troops 
at half rates during times of peace or war. 

In witness whereof, the Republic of China has caused this instrument to 
be signed and executed by its Minister of Communications acting by its 
authority and in its behalf, this 17th day of the fifth month of the fifth year 
of the Republic of China, being the 17th day of May, 1916. 

Republic of China, 

By (sealed and signed) Tsao Jtj-lin, 

Its Mmister of Communications 
Seems & Caret. 

By (signed) W. F. Caret 

Witness; Rot S. Anderson 


File No. 893.77/1652 

Minister Remsch to the Secretan^ of State 

[Telegram) 

American Legation, 

PeMng^ August 10^ 1916. 

Acting l^nister for Foreign Aiffairs has informed me that the 
Eussian Minister called upon him day before yesterday and inquired 



OOEIKA 


189 


about reported American railway concession, stating that any thereof 
located outside of the Great Wall would contravene a letter given by 
the Chinese Government to the effect that Eussia was to have the 
first option on such lines. Minister for Foreign Affairs stated that 
he knew of no such letter except the one relating to railways north 
and northeast of Peking, but that he would look up the matter. 

Eeinsoh 


FUe No. 893.77/1552 

The Secretary of State to Minister Reinsch 

[XelegraniL] 

Department op State, 
Washington^ August 12^ 1916, 

Your telegram of August 10. Take measures to safeguard Ameri- 
can interests concerned. Endeavor to obtain text of agreements 
mentioned, 

Lansing 


Pile No. 893.77/1553 

Minister Reinsch to the Secreted^ of State 

[Telegram] 

American Legation, 

Peking^ August 23^ 1916, 

Tour August 12. Minister for Foreign Affairs privately infonns 
me that no agreement exists giving Kussia preference in region 
affected, but the Eussian Minister insisted that his predecessor had 
once stated to the Chinese Minister for Foreim Affairs that Eussia 
claimed such preference north of the Great WaU, and that as the 
Chinese Government had not refused in terms, its silence was to 
be taken as consent — a pretension which the Chinese Minister for 
Foreign Affairs does not admit. 

Though the Chinese Government is not at present inclined to give 
attention to the reasoning of the Eussian Minister, it appears ad- 
visable to hold in reserve a protest against the new Eussian railway 
concession. 

EsiNScm 


PlteNo. 8^3.77/1553 

The Secretary of Staie to Minister Reinsch 

[Telegram] 

Department op State. 

Washington^ August 1916, 

Tour AuOTst 23 and Department’s No. 419. In your discretion 
whenever advisable call attention of Chinese Government to agree- 
ment with American Group ratified January 20, 1910, and state- 
ments of Gixmp that their rights never formally relinquished. 

LANSINa 



FOEEIGN RBiXiA-TIONS 


190 

Bile No. 898.77/1657 

Minister Beinsch to tJie Secretary of State 

[Telegram] 

Aimerican- Legation, 

Peking^ October 19^ 1916, 

Russian Minister informed me today that he had been defini- 
tiyely instructed to lodge a protest with the Chinese Government 
against the grant of the Fengchen (in Shansi) to Ninghsia (in 
Kansu) railway concession to Americans. The protest is based 
on an exchange of notes in 1899 between the Chinese Government 
and the Russian Legation relating to any railway connecting Peking 
with the Siberian Railway. On June 1 [1899] the Chinese Gov- 
ernment wrote a note, copy of which is included in Legation’s 
No. 1386 of March 4, 1910,^® in which the Chinese Government 
promises not to employ foreign non-Russian capital in any rail- 
way to be built from Peking to tlie north or northeast toward the 
Russian frontier. On June 17, 1899, the Russian Minister 
acknowledged this note but referred to any railway to the north- 
east or north of Peking or any other direction. Russian Legation 
relies on this latter statement. The Chinese Government main- 
tains that it can be bound only by the language in the note from 
the Foreign Office; that the whole correspondence relates to rail- 
ways from Peking to the Russian frontier; that it cannot there- 
fore be applied to a railway which runs southwestward from 
Peking, away from Russian territory; and that the latter is not 
a part of the Peking-Kalgan railway, which will be continued 
northward by the Chinese themselves. 

In the conversation the Russian Minister stated to me that his 
Government is oj>posed to Chinese colonization in any part of 
Mongolia, but it is not apparent how development of the upper 
Hoangho region — ^largely through intensive irrigation farming — 
could start migration dangerous to Russia. 

The fact that, in the course of the negotiations for the Chinchow- 
Aigun Railway, in February, 1910, the Russian Government in- 
formed the American Government only of the note of June 1, 
1899, as the basis of its railway rights to the north of Peking, 
would indicate that it did not then rely on the note of June 17. 

As the Russian Government in February, 1910,^® proposed to 
the Chinese Governmpt that in lieu of the Manchurian railway 
the American capitalists should be given the Kalgan-Urga con- 
cession, it would appear that the Russian Government had ad- 
mitted that it must assist in compensating America for exclusion 
from the North Manchurian Railway, and that we now could claim 
Russian sup^rt with respect to not only the proposed railway but 
the KaJgan Railway itself. 

The Chinese Government has appointed a director for the pro- 
posed railway, and engineers will immediately begin the prelim- 
inary survey which will determine whether tiie Rue is likely to 
be commercially profitable. 

Reinsch 


» B»r. ReL 1910, pp. 263-264. 


"BVxr. Rel. 1910, p. 261. 


CHINA 


191 


File No. 803.77/1559 

American IntematicyrK]^ Corporaiion to the Secretary of State 

New York, OGtoler 33^ 1916. 

Dear Sir : We have the honor to acknowledge receipt of the De- 
partment’s letter dated October 21/ with winch you transmitted 
for our confidential information a paraphrase of a telegram dated 
October 19, 1916, from the American Minister at Peking, relative 
to the protest lodged with the Cliinese Government by the Kussian 
Minister at Pekmg, against the granting of the Fengcheng- 
Ninghsia concession to .Americans. 

We have read the Department’s inclosure with interest, and beg 
to call the Department’s attention to the fact that the contract re- 
cently entered into with the Chinese Government by the American 
International Corporation and the Siems-Carey Railway and Canal 
Company covers the construction of 1100 miles of railway in China. 
We do not hold a concession for the construction of the railroad 
from Fengcheng to Ninghsia, although the contract above referred 
to specifically mentions this line, together with two others, as roads 
which the Chinese Government desires to construct in making up 
the total of 1100 miles of railroad provided for in the contract. 

Our agreement stipulates that in case, after investigation, the 
construction of the railroads specifically mentioned therein should 
not be found feasible, other lines giving an equivalent total mileage 
shall be selected. 

As far as the American International Coi'poration is concerned, 
we do not wish to become involved in political controversies between 
the Chinese and Russian Governments. 

We have no further comments or recommendations to make to 
the Department at this time. 

Thanking you [etc.] 

Charles G. Stone, President 


FUe No. 893.77/1560 

Minister Beinsch to the Secretary of State 

[Telegram] 

Ajvteeican Legation, 

Peking.^ October 36^ 1916, 

My telegram of October 19. Carey informs me that the Inter- 
national Corporation has suggested to him not to proceed with Feng- 
cheng railway preliminary survey until the Russian protest is cleared 
up. Such deference to an unsubstantiated claim would endanger 
the rights of Americans to do business in China. It would seem 
essential that Russia be held to the letter of any concessions made, 
and not be allowed to claim exclusive sphere of action north of the 
Great Wall, because otherwise other Powers would be encouraged 
to treat as exclusive spheres regions in which they have specific con- 
cessions, and under such a broad interpretation Americains would 
stand excluded everywhere. It would also seem that on account of 
the fibaancial support accorded to Russia, American capital would be 


* Not printed. 



192 


FOBEIGN EBlATIOlirS 


in a particularly strong position to prevent action hostile to Amer- 
ica and not in accord with the duty of Hussia to facilitate compensa- 
tion for the exclusion of American railway enterprise from 
Manchuria, even to the extent of allowing Americans to construct 
Kalgan Eailway itself as suggested by the Eussian Government in 
1910. 

The question is one between Eussia and China. The Chinese Gov- 
ernment feels entirely sure of its ground in this matter.^ The Min- 
ister of Communications today informed Carey and Chinese Secre- 
tary of Legation that his Government assumes responsibility, and 
he intimated that it would feel its rights compromised by a with- 
drawal or hesitation on the part of the American International Cor- 
poration ; and he expressed apprehension lest demonstration of tim- 
idity would invite protest by other nations against all other pro- 
posed American railway lines. 

It is desirable that the preliminary survey should proceed in or- 
der that commercial soundness of the project may first be determined. 

Eeinscjh 


File No. 89a.77/1569 

Minister Beinsch to the Secretary of State 

No. 1244 American Legation, 

Peking^ Ootoher 27^ 1916. 

Sir: In continuation of my despatches Nos. 1082 and 1118, of 
May 17 and June 14, respectively, I have the honor to report 
further concerning the agreement between the Chinese Government 
and the American firm of Siems-Carey Company for the construc- 
tion of railways. I am herewith transmitting a copy of the original 
agreement, with annexes, signed May 17 last,^° as weU as a copy of 
the ppplementary agreement, signed on the 29th ultimo. The con- 
clusion of the original contract was formally notified to the Lega- 
tion, on June 10 last, through the Foreign Office. 

There is also enclosed a translation of the mandate, issued on the 
20th instant, by which the President gives his approval to the sup- 
plementary agreement of September 29. 

While the contract had been completed and formally sanctioned, 
as well as notified to the Legation by June 10, when the last Cabi- 
net under President Yuan Shih-kai was still in existence, the changes 
in the political situation consequent upon the death of President 
Yuan rendered it questionable whether the contract would be exe- 
cuted proi^tly and without considerable opposition. While his 
exceUency Tsao Ju-lm was still holding office as Minister of Com- 
munications and Acting Minister for Foreign Affairs, the American 
International Corporation, acting as the partners of Siems-Carey 
Company in this matter, undertook to finance the contract and to 
make a preliminary advance of G$500,000. The subs^uent accept- 
ance of this advance by the Minister of Communications, made at 
a time when the complexion of the Cabinet had already changed, 
marked the acceptance of the contract by the first Cabinet of Presi- 
dent Li Yuang-hung. While the contract was considered absolutely 


<»rrjBited (mtCf p. 183* 



CEmA 


193 


binding with its communication to tbe Legation by the Foreign 
Office on June 10, nevertheless the question of its execution had 
been taken up by the new Cabinet, of which his excellency General 
Tuan Chi-jui was Premier and in which his excellency Dr. Chen 
Chin-tao mled the position of Minister of Finance. During this 
transition period and subsequently, the good will borne towards 
American interests by both of these high officials counted for a great 
deal in bringing about the rapid conclusion of the supplementary 
arrangement necessary for the smooth execution of the contract. 

On June 30 the appointment was announced of his excellency 
Hsu Shih-ying, as Minister of Communications, in place of his excel- 
lency Tsao Ju-lin. The Cabinet had now been more radically con- 
stituted through the entry of Messrs. Sung Hung-yi, Ku Chung-hsiu, 
and Chang Yao-tseng. The attitude which these new men would 
take towards the execution of the contract was uncertain; the new 
Minister of Communications, however, showed himself friendly from 
the start. He stated that in order to assure the smooth wormng of 
the contract, he would, acting under Article 17 of the original 
Agreement, suggest certain modifications. In three interviews with 
the American Minister in July and August — ^particularly in the 
interview of August 22 — ^the Minister of Communications admitted 
that the contract was complete and binding in its form at the time ; 
but he took the ground that obstruction womd be avoided and smooth 
working assured if certain concessions were made. The chief con- 
cessions asked for by the Minister of Communications were the 
reduction of mileage of the first allotment from fifteen hxmdred to 
eleven hundred miles, and reduction of the percentage of participa- 
tion of the company in the revenues of the railway from twenty- 
five to twenty per cent. ALfter negotiations extending through tne 
months of August and September, the supplementary agreement of 
September 29 was concluded in which the concessions asked for 
were made by the American company, and by which certain matters 
relating to the financial operations and to the appointment of officials 
were settled to the satisfaction of both parties. 

AlU agreement had been reached by September 21, at which time 
I directed to the Minister of Communications a note, of which a 
copy is herewith enclosed. 

There had been some discussion as to whether the contract would 
have to be submitted to Parliament for its approval. On this point 
the Legation took the position that as tbe contract had in its original 
form being entirely completed before the reconvocation of Parlia- 
ment, it could not be singled out from all the treaties and agree- 
ments, more than sixty in number, concluded without the consent 
of Parliament since the formation of the Republic. A list of these 
treaties, contracts, etc., is forwarded with my No. 1243 of today’s 
date to the Department.* 

T^le there were some voices in the Cabinet which demanded a 
submission of the contract to Parliament, ministers like General 
Tuan Chi-jui and Dr. Chen Chin-tao took the positive ^ound that 
such a submission could not be made without bringing before Par- 
liament tibe question of all contracts made before its reconvocation. 


* Not printed. 



194 


FOKEIGK BEIATIONS 


The contract was therefore not submitted to Parliament, the Minis- 
ter of Communications only holding himself ready to answer ques- 
tions in respect to it should they be asked.^ Parliament having been 
very busy with questions of internal politics and with such matters 
as the Japanese inroads in Manchuria, and the forced extension of 
the French settlement in Tientsin, the contract has thus far not 
been mentioned in Parliament. 

With respect to the approval of His Excellency the President, the 
Minister of Communications stated to me that he had requested this 
in order that there might be no doubt of the active approval by the 
President of an agreement originally made in the time of his 
predecessor. 

While the negotiations for this contract were beset with perhaps 
unequalled difficulties from the beginning, on account of the dis- 
turbed and shifting political situation, the details of the matter were 
handled with great ability by Mr. Eoy S. Anderson, the representa- 
tive of the Siems-Carey Company, under the personal direction of 
Mr. W. F. Carey himself, who impressed the Chinese particularly 
with his sense of justice and fair play. It is the object of Mr. Carey 
to create an American enterprise which will take advantage of 
American methods and experience in solving problems of construc- 
tion, development and management, similar to those which have been 
encountered in America. It is not his idea to aim purely for con- 
struction profits, but to create an undertaking which in all its parts 
will be permanently successful. He was therefore willing to stake 
the second allotment of fifteen hundred miles upon the success of the 
first alignment. Mr. Carey acts on the principle that in enterprises 
of this importance, ever3rthing depends upon the efficiency of the 
human organization created; he has therefore spared neither pains 
nor expense to gather in the United States a group of construction 
and railway experts of the highest order, who are to carry out this 
work. The general manager for Siems-Carey Company is Mr. 
Frederick C. Hitchcock, formerly of Messrs. McArthur Brothers 
and Company. 

With respect to the alignments of railway agreed upon, they do 
not, of course, equal in attractiveness such great trunk lines as the 
Pelnng-Hankow Railway and the Shanghai-l^anking Railway. 
When all the mileage already assigned to Great Britain, France, 
Germany, Belgium, etc., on which construction is now indefinitely 
postponed on accoxmt of the war, is considered, it may seem as 
though only lines of decidedly minor attractiveness could be left. 
This would indeed be true should the nations to whom concessions 
have been made be permitted to claim very broad rights of exclud- 
ing other railway enterprises in the same general regions where 
their concessions are. It may be necessary at this point to establish 
a criterion as to what shall be considered undue paralleling of a rail- 
way such as could be justly objected to by a country to whom the 
prior concession has been made. 

In connection with the above matter, the character of the Ameri- 
can enterprise is of much importance ; it must be remembered that 
the sole security of the American company is the railway itself — 
no additional securities have been assigned; moreover, as pointed 
out above, the enterprise is not confined to construction, but includes 



CHTN'A 


195 


a share in the operation and management after the lines are com- 
pleted. For these reasons, the American company wiU not consider 
building a railway which is not commercially sufficiently promising 
to^ afford both adequate security and assurance of profitable oper- 
ation. ^ These facts are in themselves a sufficient safeguard against 
a duplicating of the existing or ceded lines, which might be under- 
taken if the American corporation were assured of construction 
profits wherever, no matter where, the lines might be built. Should, 
therefore, protests be made on the ground of duplication, it would 
appear to be just and sound to take me position that the commercial 
prospects of any given line should control. 

Eeturning now to the alignments enumerated in the agreement, no 
doubt is entertained here concerning the importance and the profit- 
ableness of the railway from Hengchow (Hunan) to hTanning 
(Kwangsi). With respect, however, to the other railways, the ques- 
tion of commercial soundness can be determined only through pre- 
liminary surveys, which are presently to be undertaken. Other Imes 
are under consideration for substitution should, upon due investiga- 
tion, it appear inadvisable to proceed with the construction of any 
of the lines enumerated. 

The conclusion of so favorable a contract at this time, without 
obstruction or delay, is eloquent evidence of the good will which 
the Chinese people and officials bear toward American enterprise. 
Aside from the high officials mentioned above, among whom his 
excellency Tsao Ju-lin showed special readiness to take responsibili^ 
for advanced action, all the minor officials who were concerned in 
the negotiations showed a friendly and helpful spirit. This is true 
particmarly of Mr, Chuan Liang, counsellor, and Mr. Jen Chuan- 
pang, confidential secretary, in the Ministry ox Communications. 

I have [etc.] 

Paul S. Reinsoh 


[Inclosare 1] 

Mmister Reinsch to the MimMter of Communications 


Ambbioan Legation, 
PeJcing, September 21, 1916, 


Excellency ; I have been informed by Messrs, Siems, Oarey and Company 
that this corporation has accepted the modifications which were suggested by 
your excellency to be made in the contract signed between the Chinese Govern- 
ment and the said corporation on May 17, 1916, and communicated to me by 
the Ministry of Foreign Affairs on June 10 last, 

I am gratified that the American corporation has found it possible to make 
this arrangement as desired by your excellency, in the spirit of fostering the 
most complete cooperation between your excellency’s Government and the par- 
ties to the contract. 

It is also gratifying that now the work on this important enterprise wiU be 
immediately commenced, according to the assurances given to me by your 
excellency personally. 

I avail [etc.] 


Pauu S. Rmnsoh 


[Inclosure 2] 

Supplementary Agreement 

This supplementary agreement is made according to Article Seventeen (17) 
of the original agreement, signed May 17th, 1916, between the Government ot 
the Republic of China, represented by its Minister of Communications, and 



196 


F0KEIG3S* REIATTOlSrS 


Siems and Carey, represented by Mr. William F. Carey, and it is hereby agreed 
as follows: — 

1. — ^Article One (1) of said agreement which provides that fifteen hundred 
(1500) miles of railway be constructed shall be amended so that wherever 
said mileage appears as fifteen hundred (1500 miles, it shall be eleven hun- 
dred (1100) miles. 

2. — In the second article of the supplement to said agreement addressed to the 
Minister of Communications of the Republic of China dated May 17th, 191(5, 
and also in any other part of said agreement or its supplement where the 
percentum of the net profits derived from operation of said railways to be 
paid for handling bonds is fixed at twenty-five (25) percentum, the same shall 
be amended and reduced to twenty (20) percentum. 

3. — The first paragraph of Article Four (4) of the original agreement, shall 
be modified and reformed to read as follows : 

S'o soon as the Government of the Republic of China and Siems and 
Carey, or their assigns, shall have determined any line that shall be first 
constructed, estimates of the cost of constructing and equipping such line 
shall be agreed upon between them and the Government, and gold bonds of 
the amounts required by such estimates Shall be issued. As soon as the 
authority to issue such bonds is given by the Government of the Republic of 
(3hina, Siems and Carey, or their appointees or assigns, on behalf of and as 
agents for the Government of the Republic of China in this matter, shall 
issue such bonds as hereinafter provided, such issue to be either en bloc or 
in series as may be mutually agreed upon. 

The same procedure shall be likewise followed as to the issuance of bonds to 
provide funds for the construction of all other lines which it shall be mutually 
determined to build. The Government of the Republic of China and Siems 
and Carey, or their appointees or assigns, as its agent, will at the time of the 
first issue and of every other issue, enter into such necessary further and sup- 
plementary stipulation^ and agreements regarding the character and issuance 
of such bonds and also the deposit and transfer of the loan proceeds as the 
exigencies of the financial situation may at the time require for the proper 
economical and successful flotation of the bonds. 

Such bonds or other obligations hereinafter provided for shall be issued at 
such time, and in such amounts as will insure the continuous economical con- 
struction of the railways until the same are completed. 

4. — To the article numbered five (5) of the original agreement shall be added 
the following amendments: 

The bonds provided for in article numbered four (4) hereof shall be issued 
by Siems and Carey, or their appointees or assigns, for and in behalf of, and 
as agent for the Government of the Republic of China at a price to be fixed by 
said agent upon consultation with the duly authorized representative of the 
Republic of China, and said Siems and Carey shall use their best eflCorts to 
have said bonds sold for the highest possible price. 

When the construction and equipment of a line of railroad has been deter- 
mined upon, and the estimates covering such construction and equipment 
have been agreed to as hereinbefore provided, said agent in consultation with 
the duly authorized representative of the Government of the Republic of China, 
shall decide what is the most favorable moment for the issue of the bonds, 
and the duly authorized representative of the Government of the Republic of 
China shall give the necessary instructions to the Chinese Minister in Wash- 
ington. If at such time so determined the issue of such bonds on the terms 
named herein or agreed upon would be impossible, then in such case the Gov- 
ernment of the Republic of China and said agent shall agree upon a mutually 
satisfactory plan of temporary financing through the issue of Chinese Govern- 
ment 5-year Treasury bills at the rate of interest and discount to be agreed 
upon. Such notes shall be repaid from the proceeds of the sale of bonds to be 
Issued, when the conditions for the sale of Chinese long-term obligations shall 
have sufiSciently improved, such long-term obligations to be issued under an 
agreement to be negotiated at the time. 

If, however, subsequent to an agreement having been reached, it issue bonds 
hereunder before the publication of the prospectus for such issue, or of any 
series thereof, any poUtical or financial crisis should arise afeecting the money 
markets or the prices of Chinese Government securities so as to render impos- 
sible, in the opinion of the agent, the successful issue of the bonds at the time 
agreed upon, then the said agent upon consultation with the (Chinese Ck)vem- 



CHINA 19ff 

ment respecting the period of time, shall be granted a reasonable extension for 
the performance of its contract. If within the time limit to be arranged, the 
issue of Chinese bonds on the conditions hereinbefore set forth should be im- 
possible, then the Government of the Republic of China and its said agent, shall 
agree on a mutually satisfactory plan for temporary financing to provide as far 
as possible for the uninterrupted continuance of construction. 

5. — ^After the first paragraph of article numbered eight (8) of the original 
agreement the following paragraph shall be inserted: 

Of the three (3) officers, the engineer-in-chief shall be appointed immediately, 
the auditor as soon as required, and the traffic manager when required for 
operation. Their terms of office shall be during the life of the loans. With 
regard to the employment of all other officers, the number of them, the scale 
of their salaries, and the method of appointment, the director general or man- 
aging director shall in consultation and mutual agreement with said three 
heads of department respectively decide upon a plan. Which plan shall be fol- 
lowed. 

The director general or managing director shall reserve the right to employ 
his own office staff. 

6. — ^The Government of the Republic of China undertakes during the life of 
the bonds to be issued hereunder to treat the railways contemplated under 
this agreement in the same spirit of fairness in which all other Chinese Gov- 
ernment railways are treated. 

7. — ^AU bonds and coupons and all payments made and received in connec- 
tion with the service of any and all bonds issued hereunder, shall be exempt 
from all Chinese taxes and imposts of whatsoever nature during the life of 
said bonds or of any of them. 

8. — ^All of the uniform laws, by-laws, rules and regulations applicable to 
all Government railways in China promulgated by the Ministry of Com- 
munications, shall be observed by the railways built under this agreement. 

9. — ^The rights and duties of the Government of the Republic of China and 
of Siems and Carey, their appointees or assigns, shall be effective upon the 
day on which the agreement and aU supplementary agreements are con- 
tracted and until complete redemption of all bonds. 

10. — ^After any line of railway has been agreed upon the survey thereof will 
be immediately made. All necessary expenses thereof will be paid out of 
the advancement already made. If after the survey is completed neither the 
bonds can be issued hereunder, nor funds for temporary £nancing according 
to this supplemental agreement are available within one (1) year, the con- 
tract may be cancelled. In that event said advancement shall be repaid with 
interest stipulated, unpaid up to that time, by the Government of the Re- 
public of China, before cancellation thereof. 

Signed and sealed at Peking by the contracting parties this twenty-ninth 
day of the ninth month of the fifth year of the Republic of China, being the 
twenty-ninth day of September, 1916, western calendar. 

The Government of the Republic of China, 

By , Its Minister of Commumcation 

SlEMS AND CaBEY, 

By One of the Partners 

Witnesses : 


tlndosure 3] 

Presidential Mandate^ Published in the Offi^dal Gazette, Sunday, October 1916. 

Hsu Shih-ying, the Minister of Communications, reports that he has made 
an agreement with American merchants for the construction of railwaya In 
accordance with the terms of Article 17, certain additions have now been made. 
Also a supplementary agreement has been submitted for approval. 

The Agreement which has been entered into is approved and action should 
be taken in accordance therewith. Let the Ministry concerned notify the 
Ministry of Foreign Affairs and the Ministry of Finance, 

Seal of the President 

Issued October 1916 
106413®— FB 1916 ^18 



FOEEIGN EELA.TI01TS 


1^8 


Hie No. 893.77/15S1 

The American InternaUo'rud CorporaUon to the Secretary of State 


N’ew York, Octo'b&r 30, 1916. 

Sir: We have the honor to acknowledge receipt of the Depart- 
ment’s letter of the 27th of October,’’ transmittii^ for our confidential 
information paraphrase of a telegram dated O^ctober 26, from the 
American Minister at Peking, relative to the construction of the 
railway from Fengchen to Hangchow. 

We note that in the Department’s letter under acknowledgement 
you refer to the Fengchen railway concession. We beg to point out 
that, as stated in our letter to the Department dated October 23, the 
American International Corporation does not regard its rights under 
the contract for railway construction, recently conclude with the 
Chinese Government, as constituting a concession to build the par- 
ticular line in question. 

We have carefully read the paraphrase of the American Minister’s 
telegram, and have noted with interest the views expressed by 
Doctor Eeinsch. In this connection we have the honor to state that 
we consider that the validity of the Russian Government’s objection 
to the construction of the road in question must be settled between 
the Chinese and the Russian Governments, before the American 
International Corporation is prepared to proceed further with regard 
to this line. 


For the Department’s information we beg to state that we have 
instructed our representative in Peking not to proceed with the 
examination of the road in question at the present time. 

We have [etc.] 

WixiLABD Straight, 

Yiee President 


HleN«. 88S.77/ieS8 

Defofriment Memorandvm 

[Ertract] 

Diyisiont of Far EASTjmsr Aftaies, 

October SI, 1916. 

In 1899 (April 28) Russia and Great Britian exchanged notes 
pledging Great Britain not to seek railway concessions outside the 
Great Wall and not to obstruct Russian railway enterprise there, 
and binding Russia similarly with respect to British railway con- 
struction in the Yangtze Valley. China was notified of the agree- 
ment. 

On June 1, 1899, Russia received assurances from China that 
in building railways north or northeast of Peking, if foreign 
capital should be fqimd necessary, application would be made to 
Russia, and that China would not em^oy capital of other foreign 
natipnality. In acknowledging this note, on June 17, the Russian 
Minister enlarged the pledge, making it read “north and north- 
east of Peking or in any other ' direction.” This was without 
authority, but China does not appear to have corrected it. 


* Not printed. 



CHIKA 


199 


In 1910 Americans and Britisli subjects were parties to an agree- 
ment with. China to build a line from Ohinchow to Ajgun in 
Manchuria. The Eussians objected and quoted the pledge of China 
of June, 1899, but only as reierring to lines north or northeast of 
Peking. 

At the same time the Eussian Government, in the memorandum 
of February 24, 1910,^® handed to the Secretary of State by the 
Eussian Ambassador in Washington, suggested as an alternative the 
building of a line from Kalgan across Mongolia to Urga land Eliakh- 
ta. This line would run northwestward from Peking. The line now 
(1916) proposed, while starting from a point northwest of Peking, 
runs to a place considerably southwest of Peking. 


FUe No. 893.77/1670 

Minister Reinsch to the Secretary of State 

Ko. 1252 Ajmerioan Legation, 

Peking^ October 31^ 1916. 

Sir: I have the honor to report concerning the protest made by 
the Eussian Minister, Prince Koudacheff, against the construc- 
tion, with the aid of American engineers and capital, of a rail- 
way line from Fengchen to Ifinghsia, as reported in my telegrams 
of October 19 and 26. 

While the Eussian Minister had several conversations with the 
Chinese Foreign OjEce on various dates in August and Septem- 
ber, he did not mention the matter of the railway to me until 
October 16, upon the occasion of a call which I made at the Eus- 
sian Legation. Prince Koudacheff stated that he had for some 
time desired to speak quite frankly to me regarding the proposed 
railway. He stated that he had received instructions from his Gov- 
ernment to make preliminary inquiries and to c^all attention to ex- 
isting rights of the Eussian Government, but that he was at the 
time awaiting for instructions as to whether to make a formal 
protest. 

Prince Koudacheff expressed himself very fully and frankly 
in explanation of the Eussian policy to treat Mongolia as a nat- 
ural barrier against Chinese colonization movements in the direc- 
tion of the Eussian dominions. He stated that the 8tal;m quo in 
Mongolia, by which is meant the permanence of that country in a 
pastoral ^ate with sparse population, was essential to the feeling 
of security of his country; therefore, his Government could not 
look with indifference upon any enterprise which would induce 
the development of Chinese colonization northward in Mongolia. 
He stated that these considefations constituted the backOTOund of 
the Russian policy of trying to exclude foreign capital from rail- 
ways in tie region affected. 

The Eussian Minister thereupon spoke of the exchange of notes 
effected between the Chinese and the Eussian Government in 1899, 
concerning railways northward from Peking, the net result of which, 
he stated, was interpreted by his Government as giving them a right 


“ For. Rel. 191(>, p. 2G1. 




200 


FOBJaaGisr RBiATioira 


to insist that no foreign capital shall be employed on any railway 
line in this region. 

I stated to Prince Koudacheff that the American interests had 
always been careful to respect the known treaty rights of the Eussian 
Government in this region. Though at various times approached by 
the Chinese with a pj^o^l to assist in direct or indirect ways in the 
construction of the Kalgan-Urga Kailway, Americans had always 
declined to do so. I stated that I was not fully informed as to the 
correspondence which had passed between the Russian and Chinese 
Governments on these matters, as represented by the Minister, but 
that our information did not extend beyond the fact that the Russian 
Government had the promise that no foreign capital should be em^ 
ployed in railways proceeding from Peking to the north or to the 
northeast towards the Russian border. 

As to the railway in question, I stated that it appeared to me that 
it infringed neither the specifically granted rights of Russia, nor even 
the general policy of Russia with respect to Mongolia, as explained 
by Prince Koudacheff , implying that as to the rights of other nations, 
such a general policy could become effective only if reduced to spe- 
cific conventional form. The line in question does not pass northward 
from Peking towards the Eussian border, but passes in a westerly di- 
rection to a Chinese interior province. A^ to the matter of coloniza- 
tion, I pointed out that natural limits had been set to such a move- 
ment, as it was only the immediate banks of the Huang Ho (Yellow 
River) that would attract agricultural colonists because there alone 
water was available for intensive cultivation. In the nature of things, 
this could not be the starting point for a series of waves of coloniza- 
tion northward, because the region to the north of the Huang Ho is 
permanently arid and suitable only for grazing over wide areas; it 
could therefore not become a field for agricultural colonization or an 
area of appreciably denser population than it supports now. 

The whole matter was discussed between the Russian Minister and 
myself in the spirit of greatest frankness and friendliness, without 
argumentation; he stated that his action was naturally entirely de- 
pendent upon the view which his Government would take and upon 
its impending instructions, 

I saw Prince Koudacheff again on October 19, when he immedi- 
ately informed me that he had now received definitive instructions to 
lodge with the Chinese Government a protest against the Fengchen- 
Ifinghsia line. I stated to him that since our last interview, I had 
examined the documents which had been mentioned by him and that 
I felt more strongly than ever that Americans were not infringing 
upon any Eussian rights: I based this opinion upon the fact that 
in all the documents in question the term, ^ towards the Russian bor- 
der ” is used. The proposed railway could not be considered a pro- 
longation of the Kalgan Railway, because the Chinese are proposing 
themselves, with their own means, to extend the Kalgan Railway 
northward, with TJrga as its eventual terminal; nor could the rail- 
way be considered a branch liue, because it was to be given an en- 
tirely distinct management and, while connecting with the Kalgan 
Railway, would operate independently in connecting Kansu with 
northern Shansi. I also stated that a preliminary survey would 
probably be made without delay for the purpose of determining the 



CHIITA 


201 


coinmercial prospects of the line, the construction of which would of 
course not be undertaken unless its commercial soundness were as- 
sured. The Minister appeared to take the making of the preliminary 
survey as a matter of course, but stated, smiling, We may still hope 
that it may not be commercially profitable.” 

I did not mention to the Kussian Minister the fact that I consid- 
ered that the Russian Government, through its proposal made in the 
year 1910 that the Kal^n EaDway should be assigned to American 
capitalists as a reparation for the fact of American railway enter- 
prise being excluded from northern Manchuria, contained an admis- 
sion that the Russian Government felt under obligation to facilitate 
such compensation to American interests, and that the Russian Gov- 
ernment had itself indicated that the Kalgan Railway should be used 
to compensate American setbacks. For this reason, it would appear 
that objection to a railway far more remotely, if at all, connected 
with Russian political interests, would not be fair play. 

In the course of both of the above interviews, Prince Koudacheff 
spoke of a suggestion, which he had understood from an expression 
used in a conversation with him by Mr. Carey, that the latter would 
be very glad to build railways for the Russian Government, as well 
as for the Chinese. The Russian Minister -understood this as an in- 
timation of a desire to cooperate with Russia on this line, although 
it was not made in this sense by Mr. Carey. Prince Koudacheff was 
very favorable to this suggestion, and said that he hoped that such a 
plan would appeal to his Government. In the second conversation, 
however, he stated that his Government did not desire to entertain 
any proposal for cooperation, because it was opposed in principle to 
the building of the line. 

I have the honor to enclose herewith copies of the following docu- 
ments and reports: 

Rote from Tsungli Yamen (Chinese Foreign Office) to the Russian 
Legation, June 1, 1899. 

Rote from Russian Minister to the Tsungli Yamen, June 17, 1899. 

Rote from Russian Minister to the Tsungli Yamen, December 
10, 1899. 

Rote from Tsungli Yamen to the Russian Legation, December 14, 
1899. 

Memorandum presented by the Russian Minister to the’Wai Wu 
Pu (Chinese Foreign Office), during February or IVEarch, 1910. 

Account of two interviews between the Russian Minister and the 
Acting Mini ster for Foreign Affairs, on August 7 and 16, respec- 
tively, 1916.* 

Account of an interview between Mr. Wang Ting-chang, of the 
Chinese Foreign Office, and the Russian Minister, on August 17, 
1916.* 

Memorandum addressed by the Chinese Foreign Office to the Rus- 
sian Minister under date of October 7, 1916.* 

The following points seem to the Legation to be established 
through the correspondence between the Chinese and the Russian 
Governments, and the circumstances attendant thereon: 

1st: Thecorrespondenceof 1899 arose out of a desire of the Russian 
Government to prevent a railway being built by non-Russian capital 


• Nat printed. 




202 


FOEEIGN EEIAOTIOUsrS 


from Peking to the north, towards the Eussian border, which would 
tap the region served by the Siberian Eailway. Considerations of 
the control of communications, and not the question of colonization, 
inspired the action of the Eussian Government at this time. 

2d: In 1899, the Chinese Government quite distinctly stated that 
the agreement arrived at referred to railways built to the north and 
northeast of Peking toward the Eussian frontier, 

3d: Though in the Eussian Legation’s answer of June_17, 1899, 
the phrase, no matter in what direction ” is inserted, it is sub- 
sidiaij to the determination made in the note of the Chinese For- 
eign Office wliich is repeated; namely, “ from Peking to the north or 
to the northeast towards the Eu^ian border, no matter in what 
direction,” “ No matter in what direction ” can therefore only refer 
to incidental and local changes in the direction of the course of rail- 
ways leading from Peking northward to the Eussian border. 

4th: In 1910, when the Eussian Government was vetoing the 
activity of American railway enterprise in northern Manchuria, it 
recognized both to the Chinese Government and to the American 
Government its moral obligation to assist in offering a reparation 
for such a limiting of the sphere for legitimate American enterprise 
through advancing the suggestion that the railway from Kalgan to 
the north, the very line to which the correspondence of 1899 mainly 
related, should be turned over to American enterprise.^® 

6th: By this action, the Eussian Government admitted, eleven 
years after the correspondence of 1899, that the interests to be safe- 
guarded by that correspondence permitted of the construction of a 
through line from Kalgan to XJrga with the assistance of American 
capit^. 

6th: The railway from Ninghsia to Fengchen could be considered 
a branch of the Kalgan Eailway only, under any accepted use of the 
term, if it were to be placed under the same management and run 
as a subsidiary part of that railway line. This is manifestly not the 
case. The railway neither proceeds towards the Eussian boundary 
nor can it be justly considered a branch of the Kalgan Eailway ; it 
cannot therefore be regarded as embraced in the promises contained 
in the correspondence of 1899. 

7th : The Eussian protest could be upheld only if it were to be ad- 
mitted by the Chinese Government that Eussia had been given a 
general and exclusive preference in all railway enterprises north of 
the Great Wall. ^ It is not admissible that so broad a construction, so 
inimical to the rights of China and to the rights of American enter- 
prise, should be founded upon language so specific as that contained 
in the correspondence of 1899. 

This matter is not one that concerns the grantees of the present 
contract alone; even should they be so disposed, it is not in their 
power to waive rights which belong to American enterprise in gen- 
eral. To admit that American enterprise can be excluded through 
one-sided interpretations, and through vague deductions, rather than 
through the precise language pf the documents relied upon, would be 
to jeoplardize the freedom of American enterprise in all parts of 
China, because the competitors of America and those desirous of 


»For, Eel. 1^10, p. 201. 



onmA 


203 


having American interests active elsewhere would be only too ready 
to take advantage of any weakness on the part of American interests, 
to the end of interpreting specific concessions or preferences in cer- 
tain areas as carrying with them exclusive general rights. 

With respect to the relation of this contract to the exclusion of 
American enterprise from northern Manchuria, it would seem that 
eventually a strong position might be taken to the effect that in 
return for forbearance on the part of the United States toward the 
demands of Eussi'an railway policy in that region, the United States 
has the right to insist that no similar obstruction be practiced 
against American enterprise in regions remote from the Eussian 
border. 

I have [etc.] 

Paul S. Eehstsoh 


[Inclosure 1 — Translation] 

The TsungU Ymnen to the Rusaicm Legation, 


June 1, 1899. 

Yom Excellency: We discussed with yonr excellency a few days ago the 
subject of a railway connecting the Manchurian Railway with Peking, and 
explained the difficulty felt by the Chinese Government in acceding to the 
proposal. But we stated clearly that no other Government would be aUowed 
to construct such a railway. 

We now wish to reiterate in the plainest terms that China agrees that if 
railways are in future built from Peking to the north or to the northeast 
towards the Russian border, China reserves the right to construct such roads 
with Chinese capital and under Chinese supervision, but if it is proposed to 
have such construction xmdertaken by any other nation, the proposal shall 
be first made to the Russian Government or to the Russian syndicate to con- 
struct the railway, and on no consideration wiU any other Government or a 
syndicate of any other nationality be allowed to construct the railway. 

We ask your exceUency to communic?ate this message to the Foreign Office of 
your excellency’s Government 


[Inclosure 2] 

The Russian Minister to the TsungU Yamen 

(Translation of copy in Chinese sent to the American Legation from the Foreign Office, 

October 19, 1916.) 


Jtjnb 17, 1899. 

Receipt is acknowledged of your exc^lency’s note of the 23d day of the 4th 
moon of this year (June 1, 1899), stating that the Chinese Government would 
not allow any other Government to construct a railway to Peking, and further- 
more agreeing that if railways are in future built from Peking to the north 
or to the northeast towards the Russian border, no matter in what direction, 
China reserves the right to construct such roads with Chinese capital and under 
Chinese supervision, hut if it is proposed* to have such construction undertaken 
by any other nation, the proposal shall first be made to the Russian Grovem- 
ment or to the Russian syndicate to construct the railway, and on no considera- 
tion will any other Government or a syndicate of any other nationality be 
allowed to construct the railway. 

The statements above set forth were communicated, In accordance with your 
request, to my Government, and I have now received a reply from Count 
MouravlefC, as follows; 

The tussurauces of the Chinese Government have been respectfully noted. While the 
Russian Government wlU not at once ask for the construction of a road connecting the 
main line of the Manchurian Railway with Peking, the demand of Russia for the con- 
struction of this road was based on the responsibility assumed by the Chinese Govern- 
ment In its note of the 13th day of the 6th moon of la)3t year (July 31, 1898), which 
is direct and incontrovertible, the failure to folflll which involves an Indemnity. This 
responsibility cannot therefore be allowed to lapse* 



204 


rOEBIGir EEIiATlOirS 


[Indos'Qre 3] 

The Russian Minister to the TsungU Yamen 

Decembee 10, 1899. 

I have received a telegram from the Foreign Office of my Government, 
informing me of a report which has been spread in Europe, whereby it seems 
that negotiations are in progress between agents of the Chinese Government 
and a foreign company to raise funds for the construction of a railway 
between Peking and Kalgan. If such negotiations are actually taking place 
they constitute a violation of the terms of the note from the TsungU Yamen 
of the 23d day of the 4th moon of this year (June 1, 1899). For this reason 
I caUed yesterday at the TsungU Yamen to ascertain whether or not the 
report was correct. I was glad to hear your excellency state that your Gov- 
ernment was not negotiating the matter of the Peking-Kalgan railway with 
any foreign country and that whenever a time is fixed for building the road 
steps wiU positively be taken in accordance with the terms of the note 
of the 23d day of the 4th moon, 

I have written to my Government in this sense. 


[Inclostire 4] 

The TsungU Yamen to the Russian Legation 

December 14, 1899. 

On the 8th day of the 11th moon of the 25th year of Kuanghsu (December 
10, 1899) , we received your note stating that you are glad to learn that China 
has not agreed with any foreign company for the construction of the Peking- 
Kalgan Railway, and that if it should be decided to construct this road, it 
win be done in conformity with the stipulations of the note of the 23d day of 
the 4th moon (June 1, 1899). This has been transmitted to the (Russian) 
Foreign Office. 

This Yamen (the TsungU Yamen) has noted the above and now sends this 
formal acknowledgement 


[Indosiire 6 — ^Memorandum — ^Tranidation] 

The Russian Minister to the WoA Wu Fii 

Febbuabt oe Maech, 1910. 

The Wai Wu Pu formerly asked the Russian Minister verbally for the 
views of the Russian Government on the project of China to construct a rail- 
way from Chinchow to Aigun, The Russian Minister notified the Russian 
Foreign Office so that they might take it into consideration. A telegram has 
been received directing the Minister to state that the Russian Government, 
having carefully considered the proposal of China to build a railway from 
Chinchow to Aigun, has concluded that It would result in serious injury both 
to the Russian frontier defences and to her commercial interests. 

In the 25th year of Kuanghsu the Chinese Government declared that in con- 
structing all railways northward from Peking capital should be borrowed from 
no other country than Russia. The Russian Government would not be disposed 
to insist upon China’s complying with her former promise In this matter of 
borrowing capital for the construction of railways, if Russia’s frontier defences 
and profits in respect to the Manchurian Railway were not affected. The 
Russian railway experts have reported that the Chlnchow-Aigun Railway 
cannot fail to take from the Russian Manchurian Railway profits on trans- 
portation to the amount of 5,000,000 roubles annuaUy, and will ruin the 
property which China has a right to regain after a period of 29 years or 
which will revert to China free of cost after a period of 73 years. 

The Russian Government is of the opinion that the capitalists concerned 
in this enterprise have no other motive in making the loan than the obtaining 
of profits and that they have no political aims. If, therefore, the railway which 
It is proposed to build from Chinchow to Aigun should be constructed elsewhere 
the commercial advantages would be equally great, while Russia would suffer 



CHINA 


205 


no Injury, The foreign capitalists should have no objections to this. In view 
of the above considerations, the Russian Government now proposes to the 
Chinese Government that instead of building a railway from Chinchow to 
Aigun to build a line, connecting with the Peking-Mnkden Railway, from 
Kalgan to Urga and thence southward to Kiakhta on the Russian border. It 
is understood that China has long had an intention to build this railway, so 
that China and the foreign nations would be of one mind about it. The dffl- 
culty of China which has caused her to hesitate up to the present is that since 
this railway would not connect with the Trans-Siberian Railway it could be 
very profitable. The Russian Government would not be averse to establishing 
such a connection and would be willing to build a branch road from a station 
on the Railway in the Province of Trans-Baikalia to Kiakhta. But in the 
event of China's building this Kalgan-Kiakhta Railway she should allow 
Russian capitalists to be responsible for building the section from Urga to 
Kiakhta. 

The Russian Government greatly hopes that the Chinese Government vrtU 
see clearly in this proposal the mutual advantages that would accrue to 
both countries. 

The Russian Government would gladly accede to the wish of the Chinese 
Government to build a railway in Manchuria with borrowed foreign capital, 
if it did not affect Russia's frontier defences and the profits of her Manchurian 
Railway. Therefore Russia now bilngs forward this proposal and trusts that 
the Chinese Government will show a friendly spirit in helping to carry it out. 
The American and other Governments concerned have already been notified of 
this proposal 


Pile No. 893,77/1660 

The Secretary of State to Minister Reinseh 

[Telegram] 


I)lTAETMENT OP StATB, 

'Washington^ November 1916. 

Your telegram of October 26. If protest mentioned in your 
October 19 has been filed, inform Foreign Office that this Govern- 
ment cannot recognize Russian claim to exclusive sphere in district 
concerned, which appears not embraced in region referred to in 
Chinese note of June 1, 1899. Point out that protest appears out 
of harmony with Russian suggestion in 1910 to United States to 
join in building Kalgan-Urga railway, and seems not in accord 
with assurance of Russian Government to A merican Ajubassador 
at Petrograd on August 23, 1916,^^ that it is the definite Russian 
policy to maintain unimpaired theprinciple of equal opportunity 
for the commerce of all nations in China. 

Corporation replies to Department that validity of Russian ob- 
jection must be settled between China and Russia before Cor- 
poration prepared to proceed further with regard to tifiis line. 

Lansing 

Pile No. 893.77/1664 

Minister Remsch to the Secretary of StaAe 

[Telegram — ^Blrtract] 

AaonacAiT Legation, 

Pekmg, November lO, 1916. 

In compliance with your instructions November 2, I have in- 
formed the Chinese Grovernment of the position of the American 
Government in the matter. 


^866 Treaty between Japan and Rnssia, under Japan, telei 
American Ambassador at Petrograd, August 23, 1916, post, p, 44 


No. 721 from the 



206 


FOREIGN REIiATIONS 


In conyersation with Enssian Minister I emphasized the point 
that American rights could not be defeated by an enlarged inter- 
pretation of the specific promises of 1899. In the course of the con- 
Tersation Eussian Minister said that Eussia had protested only^ to 
the Chinese Government not to the American Government, hinting 
that should the Chinese Government decline to accede to the Eussian 
contention some other advantages might be demanded and thus 
plainly intimatii^ that the Russian protest was a caveat rather than 
a prohibition. The force of the offer of 1910 seemed tp be ad- 
mitted. Eussian Minister also inquired whether American sur- 
veyors have already started out. 

From the above it would seem that Americans proceeding with 
this railway would not encounter vigorous opposition on the part 
of Russia. 

Eeinsoh 

FUe No. 893.77/1673 

Mimster Bemsch to the Secretary of State 

Ifo. 1266 American Legation, 

Pelting^ November 15^ 1916. 

Sutr In continuation of my despatch No. 1252 of the 31st ultimo, 
reporting on the protest made by the Eussian Minister against the 
construction of a railway from Fengchen to Ninghsia, I have the 
honor to enclose copies of memoranda of conversations with the 
Eussian Minister and with his excellency Hsu Shih-ying, Minister 
of Communications, on November 7.^ 

In order to protect general American interests in the region af- 
fected, it was necessa^ for me to take a strong position with the 
Minister of Communications, notwithstanding my knowledge that 
the International Corporation did not desire at present to proceed 
with the railway. 

Upon receipt of your telegraphic instruction of November 2, I 
first or^y informed the Minister of Communications specifically of 
the position of the American Government j and I have now, also, ad- 
dressed a note to the Foreign OflS.ce on this matter, a copy of which 
is enclosed. The status of the northern railway at the present time 
is that the claim to the right to build it has been asserted by both 
the American and Chinese Governments, but that the execution of 
the construction is to be postponed until one or more of the other 
lines have been commenced. 

The Chinese Government has modified the alignment as granted in 
the original contract as from Hengchoufu to Nanning, so as to make 
Chuchow (in Hunan) the northern terminal, the railway to proceed 
thence to Nanning by way of Kweilin and Liuchowfu. Tfiiere is 
also added a branch line from Liuchowfu to Sunchow and Yam- 
chow, a port on the Gulf of TongMng. The railway is to be known 
as the ^^Chu-Chin Eailway,” the latter syllable referring to the 
coastal region of the Gulf of Tongking. The managing director of 
this line has been appointed, and surveying parties are preparing to 
leave Peking within a week. 

I have [etc.] Paue S. Ebinoh 


» Not printed. 


OHIKX 


207 


pCnclosure.] 

Minister Reinsch to the Acting UiiUster for Foreign Affairs 

No. 532 Ameeican Legakok, 

Peking, Novem>l)er 15, 1916, 

Excellency : Through the courtesy of your excellency’s Ministry I have been 
informed of the protest made by the Russian Legation on account of the grant- 
ing to American citizens of the right to finance and construct a railway from 
Fengchen to Ninghsia. Under instructions from my Government, I have the 
honor to notify you that the position of the American Government concerning 
the right of American citizens to undertake the construction of this railway 
agrees with that taken by the Chinese Government. The alignment of this 
railway is not embraced in the scope of the Chinese Government’s note to the 
Russian Legation of June 1, 1899, as it does not run from the region of Peking 
toward the Russian border, nor is it a branch of the Peking-Kalgan Railway. 
The right to prevent Americans from operating in the region affected by the 
Fengchen-Ninghsia line could therefore be founded only upon a claim to an 
exclusive sphere of influence there, which the American Government cannot 
recognize. Moreover, as the Russian Government itself in 1910 suggested that 
American capitalists should undertake the financing of the Kalgan-Urga Rail- 
way, American activity in a region far more extended than that affected by 
the present concession was as late as 1910 admitted by the Russian Government 
to be in accord with its rights and interests. The exclusion of Americans from 
the region in question, beyond specific concessions made to the Russian Govern- 
ment, would also not be in accord with the assurance given by the Russian 
Government to the American Ambassador at Petrograd on August 22 [23], 1916, 
to the effect that it is the definite Russian policy to maintain unimpaired the 
principal of equal opportunity for the commerce of ah nations in Ohina.*^ 

I avail myself [etc,] 

Paul S. Reinsch 


File No. 893.77/1578 

Minister Beinsch to the Secretary of State 


[Bbctractl 


N'o. 1282 Amerioan Legation, 

PeTcing^ November 28^ 1916, 

Sir: Supplementing previous correspondence concerning the pro- 
test made by the Russian Minister against the construction of a rail- 
way from Fengchen to Ninghsia, I have the honor to enclose trans- 
lations of the following Chinese documents, which have been handed 
to the Legation : 

Note from Russian Minister to Chinese Foreign Office, October, 
1916. 


Memorandum of conversation between French Charg6 d’ Affaires 
and Secretary of American Legation, on October 20, 1916. 

The result of all the conversations, reported in this and former 
despatches, is that, with the exception of the Russian Legation, no 
representative has entered a protest against the American railway 
(jontract. On the contrary, the representatives of Great Britain, 
France, Japan and Belguim have expressed themselves in a fa- 
vorable sense to the undertaking of this enterprise. 

I have [etc.] 

Paui* S. Retnsoh 


under Japan, Treaty with Russia, T^egrana No. 721 from Ambassador FcanciB, 
Aug. 23. 1916. 




208 


FOBBtOI<r bbiatiobb 


[Inclosure 1 — ^Translatioiil 

The Russian Miniate?^ to the Vice Minister of Foreign Affairs 

OCTOBEE, 1916. 

I have the honor to admowledge the receipt of a note, No. 165 of the 23r(l 
instant, from the former Acting Minister, Ch’en, in reference to the inter- 
pretation of the railway agi*eement of the 25th year of Kuanghsu (1899). 

In reply I have to state that the view of the former Acting Minister was 
based entirely on the Tsnngli Yamen’s note of the 23rd day of the 4th moon 
(June 1, 1899). Actually, however, that note is not in entire accord with 
the agreement entered into between the former Minister, Mr. de Giers, and 
the Tsungli Yamen, which was later confirmed by an exchange of notes. 

This question has since been settled in accordance with the view of the 
former Minister, Mr. de Giers. For, in a note of the 12th day of the 11th 
moon of the 25th year of Kimnghsu (December 14, 1899), the Peking-Kalgan 
Railway, which runs from Peking to the northwest, was included within the 
application of the said agreement, and it was stated that Chinese or Russian 
capital would be used in the construction of the railway, and that no loan 
from another country should be made. 

The loan recently made by China from an American company for the con- 
struction of the Feng-Ning Railway appears to be especially for the extension 
of the Peking-Kalgan Railway. In the opinion of my Government, since the 
agreement of the 25tli year ot Kuanghsu includes the Peking-Kalgan Rail- 
way, therefore, all extensions thereof, no matter in what direction, are also 
Included therein. 

Having now received instructions from my Government I would again state 
that the Russian Government protests against the surrender by China to a 
company of another nationality of its right to extend the Peking-Kalgan 
Railway, that it considers such surrender to be a violation of the agreement 
of the 25th year of Kuanghsu, and that it will hold the Chinese Government 
responsible therefor. 

[Pbinoe Kotjuachef] 


[Inclosure 2J 

Memorandum of a conversation between Count D. de Martel, French Charge 
d*Affaires, and Mr. J. V. A. MacMurray, Secretary of Legation 

Peking, November 1916. 

On October 20th last, Count Martel called to ask of me such information 
as I could give him in r^rd to the rumor that the Siems-Carey Company 
railway contracts contemplated' the building of a line In the Island of Hainan. 
I told him that among the lines specified as part of the available mileage In 
that contract, was one from Chungcbow to Lu Wei. He then asked the gen- 
eral character of the agreement, and I told him that it was of the same 
general character as the Panling contracts, providing for a commission on 
the basis of the actual cost of construction: and in reply to his inquiry as to 
the nature of the securities, I read him the terms of the article (VII of the 
contract of May 17th last) covering that question. 

He then said that this seemed to him qnite unobjectionable from the view- 
point of French interests ; and recalling that the newspapers that morning had 
stated that he had protested to the Foreign OflBlce against the construction of 
such a line, he said that he wanted our Legation to know that he had not 
made any such protest — ^that, with a view simply to drawing out the Acting 
Minister for Foreign Affairs (Dr. Chen Chin-tao), he had in conversation said 
that he had heard that such a line was contemplated in Hainan, and that while 
he knew nothing about it he felt obligated to call attention to the non- 
alienation agreement of March 15, 1897, and to reserve any French rights 
which might prove to be affected; that Dr. Chen had professed ignorance of 
the matter, and that he had therefore dropped the subject with him and de- 
cided to come to our Legation for definite information. 

Count Martel said that in view of the information I had given he felt, 
for his own part, that the proposed construction of the line in Hainan did not 
affect any French rights ; and that while, of course, he could not state in ad- 
vance the position of his Government, he did not foresee that it would enter- 
tain any objections to the project 



CHUTA 


209 


He then inquired concerning the proposed section from the neighborhood of 
Changsha to Nanning: and, again referring to the newspaper reports that he 
had protested against the construction of that section as infringing upon the 
rights of the Banque Industrielle under its contract of .Tannary 21, 1914, for 
the construction of a railway from Tamchow to Yunnanfu, he stated that he 
had made no such objection, and that he in fact saw no reason for any such 
objection, inasmuch as the proposed American line would serve a wholly dif- 
ferent territory and would rather contribute to the business of the proposed 
Yamchow-Tunnanfu railway, than detract from it. 

Count Martel commented in similar terms upon the proposed American line 
from Fengchen to Ninghsia, in its relation lio the concession for the line from 
Tatungfu to Ohengtu, in which French financiers have a part interest. 

J. V. A. MaoMubray 

File No. 893.77/1570 

The Searetary of State to Mmister Reinsch 

No. 635 Department of State, 

"W ashingtorij Dece^nber 7, 1916, 

Sir: The Department has received your despatch No. 1252 of 
October 31, 1916, with its enclosures, relative to the protest of the 
Eussian Government against the construction, with the aid of Ameri- 
can engineers and capital, of a railway from Fengchen to Ninghsia. 

The Department shares your opinion as to the bearing on Ameri- 
can enterprises in general in China of "the Eussian protest, and by 
reference to the Department’s telegi^am of November 2, 1916, it will 
be observed that the Department does not recognize any exclusive 
rights of Eussia in the territory concerned and that notice is given 
that all American rights are specifically reserved. 

I am [etc.] For the Secretary of State: 

Frank L. Polk 

File No. 893.77/1678 

The Secretary of State to Minister Reinsch 

No. 641 Department of State, 

Washington^ December 19^ 1916, 

Sir: The Department aclmowledges the receipt of your despatch 
No. 1266 of November 15, 1916, with enclosures, relative to the posi- 
tion taken by you in respect to the protest made by the Eussian 
Minister against the construction of a railway from Fengchen to 
Ninghsia. 

The action taken by you in this matter is approved by the Depart- 
ment. 

I am [etc.] For the Secretary of State: 

Feank L. Polk 

File No- 893.77/1577 

Mkmter Reinsch to the Secretary of Staie 

No. 1317 American Legation, 

Peking^ December 19^ 1916. 

Sir: With respect to the progress under the railway agreement 
of the Siems-Carey Company, I have the honor to report as follows: 

As the exact alignments to be constructed are left open by the 
agreement and as oSier lines may be substituted for those tentatively 



210 


FOREIGN RELATIONS 


included in the original agreement of May 17 last, there has been 
continued negotiation between the company and the Ministry of 
Communications for the selection of specific lines. An alignment 
most favorably considered, both by the corporation and by the 
Ministry of Communications, is one leading from Siangyangfu (in 
Hupei), through Nanyangfu, Yencheng Ho, and Chenchowfu (in 
Honan), to Pochow (in Anhui), with a possible terminal at Wuhoh- 
sien, on the lower Huai Eiver. The Minister has expressed himself 
in a sense favorable to granting this alignment as part of the line 
to be immediately constructed, but a final agreement to that effect 
has not yet been arrived at. The line is most attractive on account 
of the importance of the cities mentioned. 

Agreement has been reached upon the first line to be constructed. 
Instead of the line mentioned in the original contract, proceeding 
from Hengchowfu (in Hunan) to Nanning (m Kwangsi), there 
has been substituted an alignment from Chuchow, immediately 
south of Changsha, by way of Paoking (Hunan), Kweilin 
(Kwangsi), Liuchowfu (Kwangsi), to Chinchow or Yamchow, on 
the Gulf of Tongking. If a more desirable port is found in the 
western part of Kwan^ung, it is to be substituted as a sea terminal. 

The organization or the engineering parties for the survey has 
been completed. They have, however, not as yet left because the 
method of handling the funds of the enterprise has not been entirely 
agreed upon. The contract of May 17 provides that at the end of 
each month the contracting company shall render a lump estimate 
for the ensuing month; upon the approval of this by the director 
general (Chinese), he is to notify the auditor, who will then turn 
over a cneque to the contracting company. The Minister of Com- 
munications is thus far not willing to turn over the complete control 
of the expenditure of money as provided in the contract. It is not 
likely, however, that the contracting company will accept any other 
arrangement, as its only security is the railway itself, and it there- 
fore feels that it must insist upon a complete control of the expendi- 
tures for construction. 

I have [etc.] 

Paul S. Eeinsch 


ABROGATION OF BBOVISIONS OE CEB,TAIN TREATIES CONFLICT- 
ING WITH THE SEAMEN’S ACT OF MARCH 4, 1915.— ACCEPTANCE 
OF THE ABROGATION BY CHINA 
{See Belgium) 

PROTECTION OF CHINESE INTERESTS IN ECUADOR BY THE 
AMERICAN LEGATION 

(See Ecuador) 

DISCRIMINATION IN FREIGHT RATES AFFECTING EQUALITY OF 
COMMERCIAL OPPORTUNITY IN CHINA. PROTEST OF THE 
UNITED STATES 

(See Japan) 

PROTECTION BY THE UNITED STATES OF OHINBSB INTERESTS IN 

MEXICO 

(Sea Mexico) 



COLOMBIA 


COBBESPONDENCE BELATIEG TO THE TBEATT OE ABBH, 6, 1914, 
BETWEEN THE UNITED STATES AND COLOMBIA" 

FHe No. 711^/827 

Mirmt&r TTbomson to the Secretary of State 

[Telegram — tract] 

American' Legation, 
Bogota^ January £6^ 1916, 

Colombian Government and public growing restless and impa- 
tient at the delay of the Senate in considering the Colombian treaty. 
I have received long and forceful note from Minister of Foreign 
Affairs urging action. Special message from the President at the 
earliest practical moment will relieve tension, 

Thomson 

FUe No. 711.21/S34 

Minister Thomson to the Secretary of StaM 

[Blx tract] 

No. 248 American Legation, 

Bogota^ January £6^ 1916, 

Sir : I have the honor to enclose herewith a copy of a note from 
the Minister for Foreign Affairs of the 25th instant together with a 
translation of the same. It is very evident from the tone of the 
Minister’s note that the Colombian Government feels that its inter- 
ests have been treated with indifference by the United States Gov- 
ernment, and I am rather inclined to think that many are growing 
somewhat suspicious. It is now nearly two years since the treaty 
was signed at Bogota, and within a coi^aratively short time there- 
after it was ratified by the Colombian Congress. Up to the present 
the Government and the press as well as Ime people have exercised 
great patience. 

I have [etc.] 

Thad a. Thomson 

nn<^oatixe — Translation] 

The Minister for Foreign Affairs to MMster Thomson 

No. 709 Ministbt fob Foreign Aitaibs, 

Bogota, January 25, 191$, 

Mb. Minister: On April 6, 1914, there was signed by the Government of 
Colombia, represented by various Plenipotentiaries, and by that of the United 
States, represented by your excellency, a Public Treaty for the purpose of de- 
fining the rights of the High Contracting Parties in the Canal and KailToad 

^ Continued from For. BeL 1915, pp. 259-263. 

211 




212 


POKBIGK EEIATTOlSre 


of Panama and to pm an end to the other differences arising from the rebellion 
of the Department of Panama which took place in 1003. 

Although the treaty received the approval of the Colombian Congress that 
same year, 1914, it has not yet been considered by the Senate of the United 
States in the various sessions, ordinary and special, which that body has held 
since that date. This long suspension of a pact which interests the Republic 
more than anything else can possibly interest it, and the condition of doubt 
which so much delay will cause to the effects of the treaty, are in the highest 
degree prejudicial to the Government and people of Colombia, who thus see 
their rights forgotten and for whom this situation begins to be unsupportable. 

In fact, if on the part of the Republic there was real solicitude to approve 
a convention which accepts a reparation far inferior to its rights and which 
at the same time perfects the title of the United States to enormous acquisi- 
tions, still Colombia and its Government see with great pain that the Senate 
of the Union is paying no attention to these reparations, not refusing them, but 
nevertheless postponing them in an almost indefinite manner. 

I therefore venture to request your excellency to kindly make known to your 
Government that that of Colombia awaits that the Senate of the United States 
should vouchsafe attention to the condition of a friendly nation which for more 
than twelve years has borne with disregard of the most essential rights of its 
jurisdiction, Integrity and sovereignty and which has not yet succeeded in 
having this loss partially repaired, even by making the sacrifice of transferring 
legally to the United States its property rights almost complete. 

Well does the Colombian Government recognize, and well does it appreciate, 
the interest and decision with which the present Government of the United 
States attended to the necessity of celebrating a treaty which justice and 
international amity demanded. But now that your excellency’s Government has 
shown in a solemn and unquestionable manner its spirit of justice and its high 
Intentions, my Government hopes that it will conclude its just and lofty work 
through efforts, by means of its well-deserved and powerful influence, that the 
Treaty of April 6, 1914, may have the result which the two Governments in- 
tended when making it, and that It may not be reduced to a sterile effort. 

Should the result be otherwise, the unutterable injuries suffered by Colombia 
would be aggravated instead of being repaired, since, in addition to the impair- 
ment of its rights and the damage and prejudice caused to it since 1903, it 
would be forgotten : 

1st, that it, at the suggestion and proposal of the United States, agreed to 
suspend its demand for arbitration for the adjustment of the controversy ; 

2d, that the same Government which committed the spoliation of the rights 
of Colombia more than twelve years ago and the Administration which next 
succeeded it showed a disposition in favor of the reparation of those wrongs ; 

3d, that if the Treaty of 1914 should not be considered and approved, then 
the violation of the rights of Colombia would not be an act peculiar to the 
Government which committed it, hut one which in fact received the acquiescence 
and ratification of the American Union, by virtue of the failure of the Senate 
to act; 

4th, that if the treaty should fail to go into effect, then the Republic would 
be placed in a situation incompatible with all international amity, since not 
only would its original rights be disregarded but so also would be its high s